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HMRC urges people to prepare for CGT payment change

Property owners are being urged to get ready for changes to the deadline of capital gains tax payments.

HMRC urges people to prepare for CGT payment change
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  • Maja Garaca Djurdjevic
  • March 16, 2020
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Property owners selling a residential property in the UK are being reminded by HM Revenue and Customs (HMRC) about important deadline changes when paying capital gains tax.

“We want to help customers know exactly what they need to do, as it’s really important that everyone involved with the sale of a residential property fully understands the changes,” said Sarah Kelsey, deputy director at HMRC.

“People don’t usually have to pay capital gains tax if they sell the house they live in, but this is a significant change for customers who do have to pay the tax and who up to this point would include the gain in their self assessment return.”

The HMRC advised that from 6 April 2020, if a UK resident sells a residential property in the country they’ll have 30 days to tell HMRC and pay any money owed. It means for some it can be done without having to register for self assessment.  

There are also changes for non-UK residents selling both residential and non-residential property in this country. Non-UK residents will still be required to tell HMRC within 30 days whether there is tax to pay or not and will no longer to be able to defer payment via their self assessment return.

HMRC confirmed it will launch a new online service to make it easier to report and pay any capital gains tax. Owners may need to make a capital gains tax report and make a payment when, for example, they sell or otherwise dispose of:

  • a property that they’ve not used as their main home;
  • a holiday home;
  • a property which they let out for people to live in; or
  • a property that they’ve inherited and have not used as their main home.

The HMRC warned that if customers don’t tell HMRC about any capital gains tax within 30 days of completion, they may be sent a penalty as well as having to pay interest on what they owe.

Further advice and guidance is available on GOV.UK.

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