New Capital Gains Tax Legislation On Sale of Residential Property
Failure to report a capital gains on time and pay any tax due can incur penalties from HMRC. At R.L Ferris, we can provide professional advice on capital gains and help you to navigate through the complexity of the tax rules.
In recent years HMRC have changed the rules for reporting Capital Gains and the tax due as a result of the disposal of residential properties, however this has not been widely publicised.
Under current legislation a Capital Gains Tax Return must be submitted to HMRC within 60-days of the disposal of the asset and any tax due paid over by the same date. In the past this was only required to be reported on a Self Assessment Tax Return for the tax year in which the disposal was made and the tax paid over at that point.
Should you fail to report the disposal to HMRC and pay the Capital Gains Tax due as a result of the disposal within the new 60-day time limit, you will face a financial penalty.
HMRC's own website states that:
"If you sold your property after 6 April 2020 you must report and pay Capital Gains Tax within 60-days of selling property in the UK. You may have to pay interest and a penalty if you do not report gains on property within the time limit."
At R L Ferris we are here to help ensure that you are in a position to report the correct Capital Gain to HMRC and pay the Capital Gains Tax due at the appropriate time.
We offer a full Capital Gains Tax service which includes our full consideration of the reliefs available to reduce the potential tax to the minimum level possible, while remaining within the letter of the law governing such disposals.
This isn't limited to property transactions either, we also provide a full Capital Gains Tax service on the disposal of shares and other assets.