Capital Gains Tax reporting deadline extended to 60 days

Capital Gains Tax

It was announced in the Autumn Budget that the deadline to submit a Capital Gains Tax (CGT) return and pay any CGT due on disposal of UK homes has been extended from 30 days to 60 days.


Since 6 April 2020 UK residents have been required to calculate, report and pay any Capital Gains Tax (CGT) liabilities on the disposal of UK residential property within 30 days of completion. For disposals that complete on or after 27 October 2021 the reporting and payment deadline will be 60 days after the completion date.


The time period has also been extended for non-UK residence who will now get 60 days to report and pay CGT on all disposals of UK land.


The Autumn Budget also confirmed that for mixed-use properties disposed of by UK residents, only the portion of the gain that relates to the residential part of the property should be reported and paid to HMRC.


No return is required if there is no CGT to pay, for example if the gain is covered in full by losses brought forward, or main residence relief. In most cases a calculation will still be needed to confirm this is the case.


The new return is in addition to the existing tax return and so the disposal must be reported again for individuals who complete a self-assessment tax return at the end of the tax year.


If you are intending to sell a residential property, we recommend you get in touch with us as soon as possible so that we can ensure that all the necessary information is available so that the return can be filed and any CGT payable paid within the 60 days.


There will be penalties for late returns, and interest will be charged on late payments.


For more information please contact your local Lentells office;

Chard - 01460 64441,

Seaton - 01297 20584, 

Taunton - 01823 286274,