Property sellers face reduced tax deadline
BTL landlords and sellers of second homes beware the 'seismic' change in CGT taxation laws as of 6th April 2020
Under the current system, property owners have until January 31 (the deadline for self-assessment) following the tax year in which the sale of property was made, to complete a return and pay any capital gains tax (CGT). This means that, depending on the date of the sale, tax is due from 10 to 22 months after the disposal of a property.
But from April 6, UK residents who sell a residential property that gives rise to a CGT liability will need to submit a one-off return to HM Revenue & Customs and pay the tax due within 30 days of completion of the sale. “This is a seismic change,” said John Bunker, chair of Chartered Institute of Taxation’s private client UK committee.
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