HMRC have recently said to the Institute of Chartered Accountants in England and Wales (ICAEW) that it has decided not to charge daily penalties for failure to submit non-UK resident capital gains tax returns.

From April 2015, there has been a requirement for non-UK residents to file a return within 30 days of the disposal of a UK residential property, even if no tax is payable. Many people, including some conveyancing solicitors, have been unaware of the requirements, leading to penalties being issued. The initial penalty for failure to comply is £100 imposed in all cases. HMRC can charge additional £10 daily penalties for returns filed between three and six months late, and either 5% and 10% of the tax due for returns filed more than six or twelve months late.

If you would like to discuss, please contact Richard White, or James Cornish on 01788 539000.