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HMRC take lighter approach to new Capital Gains Tax reporting rules


HMRC released a fact sheet last week on the new Capital Gains Tax (“CGT”) rules for disposals of UK residential property, which implies that they will take a flexible approach towards late filing during the first three months.

This means that for transactions taking place between now and 30 June 2020, they may potentially be reported by 31 July 2020 without late filing penalties applying.  Late payment interest will still apply.

As reminder, from 6 April 2020 where an interest in UK residential property is disposed of in the 2020/21 tax year and beyond (this includes sales, gifts and transfers) by a UK resident, which results in a chargeable gain, this must now be reported to HMRC and the CGT paid within 30 days of completion.

The gain must be reported to HMRC using their new digital service, not the real time reporting service that was previously available.

This also applies to people who were currently in self-assessment, they must now report the gain within 30 days of completion and on their tax return in the year of disposal.

Non-UK residents also fall within the new rules, however they must report all direct and indirect disposals of UK property, including non-residential, and irrespective of whether there is CGT to pay.

Non-UK residents who are also in self-assessment are now no longer able to defer payment of CGT until the filing of their UK tax return.  The new digital service replaces the Non Resident Capital Gains Tax Return.

For more detailed guidance on the new rules, help with calculating your CGT position or filing using the new digital service, please contact us.


You can contact the team if you have a query about your circumstances on 01242 776000 or email