HMRC revises residential property CGT payment scheme
HMRC ran a technical consultation from 11 April 2018 to 6 June 2018 inviting views on the scheme for making payments on account of capital gains tax ("CGT") when disposing of residential property.
The new rules will be introduced from April 2020 and the payment will be due within 30 days from the date of conveyance when a residential property is sold or otherwise disposed of. The change will primarily affect those disposing of a second home or rental property, as there would be no requirement for CGT to be paid, or a return to be made, where the gains are accruing on a main residence that is fully covered by private residence relief.
It will bring UK residents into line with non-residents who already have to report their residential property gains and losses within 30 days, and if not in self-assessment, pay the capital gains tax due within the same time frame.