The deadline for reporting and paying Capital Gains Tax (CGT) arising from the sale of a residential property is set to be shortened drastically in April.
Under the current rules, UK-resident landlords and investors, as well as UK-resident people who previously used their main residence as a rental or investment property, have up to 22 months from the disposal of a property to declare it on their self-assessment return and pay the tax due.
From April, all taxpayers will have just 30 days in which to file a CGT return using a dedicated online form and to make an advance payment towards their tax bill where CGT is due on residential property. These rules are already in existence for non-resident taxpayers.
The various reliefs and allowances that apply to CGT on residential property mean that making this calculation and submitting the payment is quite an onerous task, so taxpayers will need to begin preparations for CGT before the completion of the transaction.