A major change in the reporting and payment of capital gains tax (CGT) on residential property disposals is coming.
From 6 April 2020, it will be necessary to report the disposal of the property within 30 days of completion of the disposal and pay CGT on account to HM Revenue & Customs.
This will be a significant acceleration of the payment date as CGT is currently payable with income tax on 31 January following the end of the tax year. Hence, where completion of a property disposal takes place on 1 April 2020, CGT will be due 31 January 2021. If, however, completion is delayed to 1 May 2020, CGT would need to be paid on 31 May 2020.
Note that ,the new 30 day reporting and payment obligation will not apply where no tax is payable, such as the disposal of the taxpayers private residence.
For more information, contact your usual Beavis Morgan Partner