Late reporting penalties extended for Capital Gains Tax (CGT)
Changes have been applied, as of 6th April 2020, that state that if a UK resident sells a property within the UK, they now have 30 days to inform HMRC and pay any monies owed. In order to comply, the seller must submit a tax return that includes the CGT, which is no longer allowed as part of a self-assessment return.
Any residents who fail to inform HMRC of CGT within 30 days of completion may receive a penalty, and, potentially, also a notice of interest on the remaining sum owed.
HMRC are allowing for a period of adjustment and therefore have confirmed they will not issue late filing penalties for CGT account returns that are submitted up to, and including, 31st July. Any submissions completed from 1st July onwards that are not reported to HMRC within 30 calendar days will receive a late penalty. Any CGT that is not paid within 30 calendar days will begin to accrue interest.
Danielle Harvey ACA, of Harvey, Telford & Bates, commented:
“This new change will help residents who are selling properties during this time to report, and pay for, their CGT with a little more time. As the process is also moving to a new online system, it will be quicker and easier for residents to report any CGT, but it’s important that the deadline – although extended – is acknowledged, to avoid any fees. We can help make this new process easy to understand and talk you through the new process to ensure you don’t miss the deadline.”
For more information on how a member of our team can help you report CGT, please call us on 01743 462604 or email us at [email protected].
Read more about the new CGT process here.