Home | Blog | Capital Gains Tax – Pay on account within 30 Days of disposal of residential properties
Posted by karengray - May 9, 2018 3:25 pm
Capital Gains Tax – Pay on account within 30 Days of disposal of residential properties
HMRC has issued a consultation document that sets out proposals to collect Capital Gains Tax on disposals of residential properties within 30 days from the date of disposal. These new rules are expected to become law with effect from 6 April 2020.
Under the existing rules, payment of Capital Gains Tax is due for payment on 31 January following the previous tax year ending 5th April. This means you have between 10 and 22 months following disposal to pay your Capital Gains Tax.
This is illustrated as follows:
Sold residential property 30 March 2018, Capital Gains Tax due on 31 January 2019.
Sold residential property on 30 April 2018, Capital Gains Tax due on 31 January 2020.
From 2020 sold residential property on 30 April 2020 Capital Gains Tax due 20 May 2020.
Any underpayment or over payment will be reflected in your self-assessment return.
For further advice on Capital Gains tax contact your local MFW office.
Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Therefore, before taking any action we recommend you get in touch with us to discuss your own situation.
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