Changes to Capital Gains Tax April 2020
Property owners selling a residential property in the UK are being reminded by HM Revenue and Customs (HMRC) about important deadline changes when paying Capital Gains Tax (CGT).
From 6 April 2020, if a UK resident sells a residential property in this country, they’ll now have 30 days to tell HMRC and pay any money owed.
There are also changes for non-UK residents selling both residential and non-residential property in this country. Non-UK residents will still be required to tell HMRC within 30 days whether there is tax to pay or not and will no longer to be able to defer payment via their Self Assessment return. HMRC will launch a new online service to make it easier to report and pay any CGT.
Owners may need to make a Capital Gains Tax report and make a payment when, for example, they sell or otherwise dispose of:
- a property that they’ve not used as your main home
- a holiday home
- a property which they let out for people to live in
- a property that they’ve inherited and have not used as their main home
CGT is not usually payable if its the primary residence, but this is a significant change for customers who do have to pay the tax and who up to this point would include the gain in their Self Assessment return.
If customers don’t tell HMRC about any Capital Gains Tax within 30 days of completion, they may be sent a penalty as well as having to pay interest on what they owe.