Doubling of time limit for payment of CGT on residential property transactions

Doubling of time limit for payment of CGT on residential property transactions

One piece of welcome news announced in yesterday’s Autumn Budget is the increase in the period of time for reporting and paying Capital Gains Tax (‘CGT’) following the sale of a UK residential property, from 30 days to 60 days after completion.  The same increase will apply to non-UK residents disposing of UK property, and in both cases, the new deadline applies with immediate effect[1].

The announcement follows a recommendation made by the Office of Tax Simplification in their second report following their review into CGT[2], which highlighted that 30 days was not long enough to give taxpayers to meet their obligations.

For specific advice on Capital Gains Tax and how it might apply to you, please contact a member of our Private Client team.

[1] Autumn Budget and Spending Review 2021: A Stronger Economy for the British People (publishing.service.gov.uk)

[2] Capital_Gains_Tax_stage_2_report_-_May_2021.pdf (publishing.service.gov.uk)