Budget update: Capital Gains Tax payment extension

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44 (0)330 024 3200 and discover how we can help you.

The Chancellor in his Budget today delivered welcome news to individuals facing a capital gains tax liability following the sale of UK residential property.

UK resident individuals currently have just 30 days to report and settle any capital gains tax liability following the completion of the sale of UK residential property (including the residential element of mixed-use property), leaving many struggling to file the additional tax return and to make the tax payment.

The government will, in its Finance Bill, extend that reporting and payment window to 60 days with effect for transactions completing on or after 27 October 2021.

However, it is not all good news. Non-UK resident individuals have to report the sale of all UK land, whether held directly or indirectly, within 30 days irrespective of whether there is any tax to pay or the type of land/property, and where tax is due to make the payment within 30 days.

The new 60-day reporting and payment window will only apply to UK residential aspects. This is likely to cause confusion for non-UK resident individuals especially those disposing of mix-used properties as they will have different deadlines for the different aspects of the same transaction.

Many clients struggle to meet the 30-day filing deadlines as the system of registering with HMRC is not straightforward and can prove time consuming.

Doubling the time allowed for UK residential property is good news but causes more complexity for non-UK resident clients

For more information contact our friendly expert Debbie Wilson on hi@hhllp.co.uk or +44 (0)330 024 3200 and she will be happy to assist.

Do you need extra information?

Debbie Wilson - Director at Hillier Hopkins

If you are thinking of selling an asset (personal company shares, holiday home, land etc), Debbie can help you to achieve your aims in the most tax efficient way.

Contact Debbie at debbie.wilson@hhllp.co.uk or on +44 (0)20 7004 7139