Date posted: 15th Nov 2018
If capital gains tax (CGT) is payable in relation to the sale or gift of a residential property then, from April 2020, you will only have 30 days from completion of the disposal to report the sale to HMRC and pay the CGT.
This represents a significant reduction in reporting timescales as if you sell a property today, then you would have until 31 January 2020 to declare the gain and make payment of the CGT.
Reducing the reporting deadline to 30 days seems a very short timescale given that you will need to calculate, report and make payment of the CGT. It will therefore be appropriate for you to gather information that you will require, well in advance of sale. The information required will included details of historic costs – cost of the property, legal fees, stamp duty etc as well as costs in relation to enhancement expenditure such as new kitchens and extensions. If you lived in the property, it will be necessary to recall dates of occupation of the property.
Therefore anyone looking to sell a residential property in the next few years, should start to plan and gather this relevant information, given the tight timescale after April 2020.
If you have any queries about this change or other aspects of CGT, then do give us a call.