Capital gains tax: updated guidance of HMRC on reporting deadline of capital gains tax (CGT) on UK residential property disposals:
As UK residents will have to report and pay capital gains tax (CGT) on UK residential property disposals, file for CGT return to HMRC within 30 days after completion of the disposal of UK residential property or flat made on or after 6th April 2020. But on 9th April 2020 HMRC introduced some changes in late filing deadline, reporting and paying capital gains tax on UK residential property disposals according to which if UK residents sell and complete their transactions on residential property in between 6th April to 30 June and reported it to HMRC and pay any CGT due on gains by 31 July will not subject to any penalty from HMRC on this late reporting and paying capital gains tax on UK residential property disposals and filing of CGT return.
The purpose of this new changes is to help or make it easy for the UK residents to report selling their residential property during this time, pay their CGT with some more time by applying through the new online system quickly and easily. As HMRC stated that
“To help those selling properties familiarize themselves with the change in the rules and a new on-line process, HMRC is allowing a period of time to adjust and will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020”.
However, if any disposals of UK residential property make on 1 July by UK residents, it will have to be reported to HMRC and you have to pay any CGT due on this disposals and file for returns within 30 days or by 31 July to avoid penalty from HMRC on late filing after 30 days and interest on CGT due.
What happened if you don’t report capital gains?
If you fail to file and pay capital gains tax residential property 2020/21 disposals by up to 6 months, you will incur the penalty of £100 and if you get late filing and reporting CGT more than six months and more than 12 months, will incur penalty £300 or 5% of any tax due.
Real time capital gains tax service of Accountants in Reading:
You can contact our team of accountants in Reading for your any tax-related affairs and for filing and reporting your CGT and any tax return as we are expert in any tax relate matter, calculating your annual tax, filing your tax returns and help you to identify any tax relief that you can get.