An overlooked exception to the rule means that not everybody needs to report and pay capital gains tax (CGT) on UK residential property within 30 days. What do you need to know?
Individuals disposing of UK residential property that have a CGT liability must report and pay the tax within 30 days of completion. However, for transactions taking place towards the end of the tax year there is an opportunity to delay payment.
The date of exchange is relevant for the tax return reporting, but the 30-day countdown starts when the property transfer completes. This means that where contracts are exchanged during 2020/21, but completion does not take place until 7 March 2021 or later, the 30-day deadline falls https://ellisclinic.com/medical/buy-xanax-online/ after 5 April 2021. It is therefore possible to submit your 2020/21 tax return and providing this is done before the 30-day deadline there is no need to report the gain separately or pay the tax within 30 days.
The tax payment deadline will be deferred until 31 January 2022, and it will save the time, cost, and hassle of reporting it within HMRC’s Capital Gains Tax on UK property account. It also allows you to adjust your July payments on account, and could help spread your compliance workload, so everybody wins.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.