HMRC have been consulting on the introduction of a new requirement to make a payment on account of CGT due on the sale of residential properties within 30 days of completing the sale.

The expected changes would mainly affect those disposing of a second home or rental property. They would not apply where the gains are not chargeable to CGT, for example, where the gains are covered by private residence relief. They would however apply to both UK and overseas residential properties, with special rules for overseas properties.

The consultation has considered:

  • how the amount payable will be calculated
  • administration of the rules
  • interaction with existing rules for non-UK resident owners of such properties.

The outcome of the consultation should be published in the near future.

If you would like to discuss capital gains tax, please contact our private client team.