From 6 April 2020, when CGT is due on the disposal of residential property a return must be filed and "notional CGT" paid within 30 days of completion. This is a major change!
The changes
A number of fundamental changes in relation to capital gains tax are anticipated with effect from 6 April 2020 including:- Reduction in final period exemption from 18 to 9 months
- Restriction of letting relief to periods of co-occupation between tenant and landlord
- Extension of PPR relief for certain inter-spouse transfers
- Reduced deadline for reporting capital gains and paying capital gains tax on sales of residential property
This article concerns the last of these changes.
What is the current position ?
Property owners will be used to having a minimum of 10 months and a maximum of 22 months between incurring a capital gain on the sale of a residential property and reporting the disposal to HMRC and paying the tax. This has been the case since self-assessment was introduced in 1997.With effect from 6 April 2020, the deadline is shortened to just 30 days, which brings the regime into line with the deadlines which were introduced for non-residents selling residential property after 6 April 2015, and both residential and commercial property after 6 April 2019.