HMRC extends CGT reporting deadline
HMRC has confirmed it will not charge penalties for the late reporting of capital gains tax (CGT) on disposals of UK residential property by UK residents made by 31 July 2020.
Changes at the start of this tax year mean that if a UK resident sells a residential property in the UK, they will have 30 days to tell HMRC and pay any money owed.
The seller must submit a standalone tax return covering the CGT, which can no longer be included as part of a self assessment return.
Failure to tell HMRC about any CGT within 30 days of completion may incur a penalty, as well as interest on the sum owed.
However, HMRC stated: 'To help those selling properties familiarise themselves with the change in the rules and a new online process, HMRC is allowing a period of time to adjust and will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020.
'For UK residents, this means transactions completed between 6 April and 30 June 2020 and reported up to 31 July 2020. Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days.
'Interest will accrue if the tax remains unpaid after 30 days.'