CGT - New residential property gain reporting regime from April 2020
If you currently own UK residential property, you need to be aware of the new rules which will take effect from April 2020. From this date UK residents are required to submit a return to HMRC within 30 days to report any gain on the disposal (direct or indirect) of UK residential land and property. The capital gains tax also needs to be paid within the 30 day deadline where previously it was due on 31 January following the tax year of disposal . It may not be possible to finalise the tax liability within the 30 days but the calculation can be amended as part of the annual self assessment return although interest will be charged on tax underpaid from the due date. You do not need to make a return where there is no CGT due so this would cover the disposal of your own home provided you have lived there for the entire period of ownership.
Since the obligation to file this land return falls wholly on you, the taxpayer, it is important to keep us informed of any potential disposals so that the 30 day deadline is not missed as penalties will be charged by HMRC. You may want to confirm with your solicitor or estate agent as to whether they intend to deal with this return on your behalf as part of their services.
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