Payment period on residential CGT is doubled
The measure was announced by Chancellor Rishi Sunak in the recent Autumn Budget.
The CGT change applies from 27th October 2021 for UK residents selling UK residential property. As announced, residents can now report and pay capital gains tax from 60 days after the completion date.
For non-UK residents disposing of property in the UK, this deadline will also increase from 30 days to 60 days. For UK residents with mixed-use property, the legislation will clarify the payment window, and will only apply to the residential element of the property gain.
The Treasury says that these changes will ensure that taxpayers have sufficient time to report and pay CGT. This is as recommended by the Office of Tax Simplification (OTS). The Association of Accounting Technicians (AAT) has campaigned for this change for the past 18 months.
Phil Hall, Head of Public Affairs and Public Policy at the AAT, said:
‘It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer. Very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.’
Danielle Harvey ACA of Harvey, Telford & Bates reflects on the increase:
“The Autumn Budget has given an extensive look on the upcoming changes proposed and expected. Those who benefit from the increase in time to report and pay their capital gains tax allows not only more time to produce and provide accurate figures, but more time for residents to engage with advisers.
At Harvey, Telford & Bates, we are on-hand to help assist you in such matters.”
If you would like more information or guidance, please call us at 01743 462604 or alternatively email us at [email protected]
For more information on the CGT payment period increase, click on the Gov.UK link here