by Lucy Webb – Accounting Web

The deadline to submit a capital gains tax return, and pay any CGT due, on a disposal of UK homes has been extended, with immediate effect, from 30 to 60 days.

28th Oct 2021

For disposals of UK residential property completed on and after 6 April 2020 UK tax residents have had to report the gain to HMRC, and pay the CGT due, within 30 days of completion. Non-UK tax residents have been obliged to report any disposals of any UK property or land (residential or commercial) and pay any CGT due within the same time limits.

The Autumn Budget has changed that. For disposals that complete on or after 27 October 2021 the reporting and payment deadline will be 60 days after the completion date. Relevant disposals that completed before 27 October 2021 are still subject to the 30-day deadline.

Mixed use

In addition, the Autumn Budget confirmed that, for mixed-use properties disposed of by UK residents, only the portion of the gain that relates to the residential part of the property should be reported and paid to HMRC.

Welcome change

Doubling the time to report a disposal to HMRC through the CGT on UK property account has been welcomed by the CIOT, who have been pushing for changes to the CGT reporting system for some time.

The 30-day deadline has proven challenging ever since its introduction as Helen Thornley has reported. The 60-day filing and payment window provides much needed breathing room for taxpayers and tax advisers alike, especially for taxpayers grappling with complex disposals.