Property Taxes – CGT payment window for residential property expected to be reduced to 30 days from April 2020

As reported in our recent blog, HMRC published a consultation in April 2018 regarding the payment of capital gains tax (“CGT”) when disposing of residential property.

HMRC have now published responses to the consultation and have confirmed they intend to go ahead with their plan of introducing a new system that will require CGT on the sale of UK buy to let and second homes, both at home and abroad, to be payable within 30 days of disposal.  The changes will not affect the disposal of an individual’s main residence, as gains continue to be covered by principal private residence relief.

The new rules are expected to take affect from April 2020 and mean individuals will be required to pay CGT within 30 days of completion, together with a return disclosing the sale and calculating the CGT payable.

We will keep you updated as more information becomes available.

For more information, please don’t hesitate to get in touch with us.

By Lynn Gracie, Private Client International Tax Director.