Have You Forgotten Your Capital Gains Tax Return?
Penalties if you fail to file within 30 days ...
Posted by Helen Beaumont on 01/07/2020 @ 8:00AM
So many people have forgotten about the new 30-day filing and payment deadline for Capital Gains Tax during the lockdown. Now we're seeing an upturn in the UK property market, penalties are soon to follow ...
Don't forget to file your Capital Gains Tax return within 30-days of completion!
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When exchange and completion falls after the 6th April 2020, the vendor or agent needs to file an online return reporting any taxable gains from the sale and pay the CGT due, both within 30-days of the actual completion date.
"Before the 6th April 2020, it was only non-UK residents that needed to file a Capital Gains Tax return following the sale!"
That has all changed now and UK individuals, trustees and personal representatives who are resident in the UK must now file a CGT return within 30-days of completing.
If a gain is fully covered by a Capital Gains Tax relief, losses have been brought forward or there is an annual exemption, there is no need to file a return. Otherwise, you must comply with the 30-day deadline.
So remember that you have 30-days from completion of the sale of your property to file your Capital Gains Tax return unless you have a relief available. This must be done via the Government Gateway where you will need to set up a CGT on UK property account.
If you don't then you will receive an automatic late filing penalty of £100 and if the return is more than 3 months late, you will receive a £300 penalty at both 6-months and 9-months, just like for late self-assessment returns.
"But it's not all bad news!"
If your notional CGT has been over-estimated during the filing process, you can offset it against additional tax-liabilities when you file your self-assessment return in the following financial year.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the Capital Gains Tax filing deadline for your property sale, do call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help you.
About Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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