There is a forthcoming legislation change which affects the taxation of capital gains on property; notably a change to the reporting and payment on account obligations for UK resident individuals with residential property gains. The changes will take effect for disposals on or after 6 April 2020, in line with announcements made at Budget 2017.
The current deadline for UK resident individuals to report all capital gains and pay the capital gains tax thereon is 31 January following the end of the tax year of disposal. This means that there is an interval of between 10 and 22 months between the disposal and the reporting/payment date.
From 6 April 2020, individuals with chargeable gains on the disposal of residential property will be required to make a return and payment on account within 30 days of completion. The changes align the due dates for reporting and payment with those applicable to non-UK residents, who are already subject to a 30 day payment window for gains on UK residential property.
Penalties will apply for late or incorrect returns, and interest will be due on late payments.
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