New guidance on property disposals
Anyone who has tax to pay on the disposal of a UK residential property must complete a special capital gains tax (CGT) return and make a payment within a short space of time. This regime has been in place for almost two years, but HMRC’s guidance has been less than clear - until now. What's the latest development?
Since April 2020, all UK residents who make a gain on UK residential property where there is a CGT liability must report it via the CGT on UK Property Account. Initially, the deadline for the return (and payment) was set at 30 days from completion. However, this increased to 60 days for completions made on or after 27 October 2021. There have been numerous issues with the service, such as overpayments not being automatically refunded. Guidance has also been thin on the ground, though HMRC promised that improvements would be made here.
The new guidance has now been published by way of an appendix to the Capital Gains Manual. It covers a wide variety of situations, including information for non-UK residents and accountants. It covers everything from setting out the information required and a step-by-step guide to completing the return, to information about submitting amendments, e.g. where errors are made.
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