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Capital Gains Tax from 6th April

Are you a Landlord or a Property Investor or do you have more than one residence…CGT payment and reporting window for residential property disposals from 6 April 2020

Changes introduced by the Finance Act 2019 mean that anyone that disposes of residential property on or after 6 April 2020, must report the gain and pay the Capital Gains Tax within 30 days of the disposal. Failure to comply will trigger a penalty and incur interest on unpaid CGT. The new rules also apply to trustees of trusts for UK residents that dispose of UK residential property.

If the property is your main residence you will probably not be affected by this change. This will particularly affect Landlord and Property investors.

The new rules apply to disposals of main residences, holiday homes, residential lettings and inherited homes that are not used as main residences throughout the period of ownership. However, the 30-day deadline is disapplied if any of the following apply:

  • The legally binding sale contract was made before 6 April 2020.

  • Principal private residence relief is available.

  • The disposal was made to a spouse or civil partner.

  • The capital gain (together with any other chargeable residential property gains in the same tax year) are within the annual CGT exempt amount

  • The property was sold at a loss.

  • The property is outside the UK.

HMRC will launch a new online facility for reporting and paying CGT in April 2020, which can be used by UK residents and non-UK residents making disposals from 6 April 2020.