Capital Gains Tax on property – new 30 day rules

Under current rules, capital gains tax (CGT) due by individuals is reported and paid through the self-assessment regime. However, from 6 April 2020 new rules mean that CGT payable on certain types of gains will be due up to 21 months earlier.

From 6 April 2020, CGT due on the sale of a residential property will need to be paid within 30 days of the completion date. A provisional calculation will need to be submitted together with payment of the estimated CGT. The capital gain will also be declared on the self-assessment return with the balance of any CGT due over and above the original estimated amount.

Individuals who are not in the self-assessment regime will still have to comply with the new ‘30 day’ declaration and payment rules.

The new rules will apply in situations where no consideration has passed between the parties i.e. when a property is gifted between family members or onto a trust.

Beware, HMRC will impose interest and penalties for failure to comply with the new rules.