The Office of Tax Simplification (OTS) has recommended extending the payment deadline for Capital Gains Tax (CGT) for divorcing couples and those selling property.
Introduced in April 2020, the current rules mean that UK residents disposing of a residential property which is liable to CGT have 30 calendar days from the date of completion to tell HMRC and pay any tax owed.
The OTS has concluded many sellers are finding it difficult to meet the 30 day deadline. The 125-page report which looked at revamping the CGT system found that, out of 51,300 CGT returns filed with HMRC between 6 April 2020 and 6 January 2021, 33% were filed after the 30-day deadline.
The complexity of residential property disposals combined with ongoing delays in conveyancing due to the buoyant housing market has made the challenge of filing on time unfeasible for many, particularly if they own several properties.
For more advice on CGT or any other tax-related matters, contact our team on 01788 539000 or 0116 261 0061.
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