Legal News | 17.03.22
CGT 60 day deadline to report sale of property
CGT, as easy as 123..?
Capital gains tax (known as CGT) is a complex tax governed by complex rules. Many are unaware of the full extent of those rules.
Did you know?
- If you dispose of an interest (either by selling or gifting) in residential property, resulting in a CGT charge, you must submit a CGT return to HMRC and make a payment within 60 days of completion of the sale or gift? (There was a 30 day deadline but this has increased to 60 days for completions following 27 October 2021).
- There is no need to report or pay CGT if the sale relates to your main residence as this would be covered by Private Residence Relief (but note there is strict criteria in order to qualify for this relief).
- This will therefore affect those selling second homes which do not qualify for Private Residence Relief.
- Previously you would have simply reported such a sale/disposal via your tax return and paid the tax by 31 January following the tax year of sale/disposal.
- Non-UK residents are impacted by the above if they dispose of any form of UK land.
- There are penalties incurred for late returns.
If you are selling a property and think there might be a CGT liability, please contact us at wealth@wansbroughs.com or speak to your accountant.
From CGT to TRS…
Trust Registration Service
If you are the trustee of a trust, now is the time to check whether you need to be registering the trust with HMRC’s Trust Registration Service (TRS). Following the recent introduction of the 5th Anti-Money Laundering Directive (5MLD), with a few exceptions, all non-taxable express trusts are now required to register. If you are unsure as to whether your trust requires registering, please get in touch as we can help.
