The 30-day deadline for the reporting of chargeable gains on UK residential property disposals and payment of the Capital Gains Tax (CGT) has been a challenge.
Even for the most straightforward sales, issues with the HMRC registration system have hampered the process and caused delays. For more complex transactions there have been added hurdles such as the need to obtain a valuation or establishing details of owner-occupation and permitted absences to calculate main residence exemption.
For those who were unable to accurately quantify their gain and disclose it in time, the only option was to file and settle late (with the risk of consequent interest and penalties) or submit a return based on best estimates, knowing that any overpayment made could be tricky and slow to reclaim.
Fortunately, the government has listened to recommendations made by the Office for Tax Simplification and doubled the timeframe so that taxpayers whose disposals complete after today will have 60 days to report and pay their property CGT.
If you have any queries, please do not hesitate to contact me melissa@fusiontax.co.uk
