From 6 April 2020 UK residents who sell a residential property that gives rise to a capital gains tax (CGT) liability must send a new standalone online return to HMRC and pay the tax due within 30  days of completion of the sale. The new filing and payment time frame is different from the current position where taxpayers have until the Self Assessment tax deadline of 31 January after the tax year in which the disposal is made, to complete a tax return and pay the CGT.

The current system means that, depending on timing of the sale,  CGT is due anything from 10 months to 22 months after the sale or disposal. The new 30-day deadline means people have less time to calculate the CGT, report the gain and pay the tax, warns the CIOT.  The new return will need to be done online, requiring taxpayers to  have a Government Gateway account to either submit the return  themselves or to digitally authorise a tax agent to do it for  them.

Selling or disposing of a residential property that gives rise to a taxable gain will fall within the new 30-day deadline if the disposal is completed on or after 6 April 2020. Residential property owners with likely taxable capital gains who are going through the  process of selling now should keep a close eye on the  Government’s website (Gov.UK) to check for updates on how the  new system will work. The CIOT expects more details by 6 April  2020.