HMRC has updated its guidance, including how to get authorised as an agent. What do you need to know?
Recap
From 6 April 2020 UK resident individuals, trusts and personal representatives who are due to pay capital gains tax (CGT) on UK residential property disposals have 30 days after the completion date to report and pay the tax. HMRC is allowing a period to adjust and will not issue late filing penalties for CGT returns received late up to and including 31 July 2020. Note that a return is not required if there isn’t a CGT liability, unless your client is not resident in the UK.
Why is this different?
Most disposals of UK residential property taking place from 6 April 2020 must be reported within your client’s Capital Gains Tax on UK Property Account. In order to submit the return, you will need to obtain authorisation, even where you are already authorised to deal with their self-assessment returns.
How do clients set up the account?
Your client will need to create a Government Gateway user ID if they do not have one and then create a Capital Gains Tax on UK Property Account. Clients may need assistance with this. If a Government Gateway user ID has not been created in the past, your client will need to verify their identity before they can create the CGT account. This can usually be achieved by entering information from their most recent P60, or a UK passport.
How do you take over as agent?
First, you will require the client’s account number and UK postcode or country of residence. Next, you should sign into your agent services account then select “ask a client to authorise you” and enter the relevant details. You’ll then get a link to share with your client. Send your client an email asking them to go to the link to authorise you. The link will expire 14 days after it was created. You’ll get an email after your client accepts or rejects your request, or if the link has expired after 14 days.
Tip
If you have clients who are likely to dispose of chargeable UK residential property, ask them to set up the account and agent authorisation now. This should make meeting the 30-day deadline a little easier for all involved.
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.