You now have twice as long to pay capital gains tax on your property06/12/2021
One message from the Autumn Budget that you might have missed could have important ramifications for your finances: the period for filing and paying capital gains tax (CGT) has been doubled from 30 days to 60 days. These days are counted from the date of completion that a property is sold.
This policy applies regardless of whether the seller is a UK resident or not… what matters is that the property itself is in the UK. The change came into force on 27 October, 2021.
According to the Treasury, upping the file and payment date from 30 to 60 days will give taxpayers ample time to report and pay any CGT they may owe. The move was suggested by the Office of Tax Simplification.
The Association of Accounting Technicians (AAT) has been campaigning for this change for the past 18 months, seeing it as beneficial for both taxpayers (who now have longer to pay) and HMRC (which is likely to have to deal with fewer late payments).
In a statement, the ATT’s Head of Public Affairs and Public Policy, Phil Hall, 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.”
If you need any help navigating recent tax changes – or you have recently seen capital gains and want advice on filing and paying your tax bill – call JW Hinks on 0121 456 0190. Our friendly and professional tax team will ensure you comply with legal requirements, and do not pay more than you have to.