Capital Gains Tax on Residential Property: Changes you need to know!
Until now, reporting property disposals and paying any resulting capital gains tax (CGT) was not due until the self-assessment deadline, which for UK-residents could be up to 22 months after the disposal took place.
However, with effect from 6 April 2020, disposals of UK residential property on which CGT is due will have to be reported and the tax paid within 30 days of the disposal completion date (not the contract exchange date).
Second homes or rental properties owned by individuals will fall under this new deadline, however the deadline does not apply to gains that are covered by Principal Private Residence Relief (PPR). The deadline also does not apply to companies liable to Corporation Tax, where the existing arrangements to pay their liability within 9 months and 1 day following the end of an accounting period will still apply.
If you require further information on the proposed changes, please speak to one of our advisors.