The new 30-day reporting and payment deadline has been confirmed from 6 April 2020.
This new deadline is applicable when second homes or rental property is sold. Currently, Capital Gains Tax (CGT) is payable by 31 January following the end of the year of assessment within which the gain was made. For example, if the sale completed on 1 May 2018, the CGT is due on or before 31 January 2020.
However, as of April 2020, this window will be shortened substantially to 30 days after completion of the sale. Therefore if the sale completed on 1 May 2020, the CGT will now need to be paid on or before 31 May 2020.
The new rule is also applicable in the case of those selling on behalf of deceased persons.
It is advised that those in receipt of the gain will need to self-assess and make reasonable estimations as to their taxable income for the year in order to calculate the amount payable.
If you’d like to discuss these changes and how they may impact you in the future then get in touch