Capital Gains Update
New legislation has been introduced regarding the reporting requirements of UK residents disposing of UK properties. From 6 April 2020 a disposal of a residential property must now be reported and tax paid to HMRC within 30 days of the completion of sale.
The new reporting requirements will only apply to disposals where a gain is made and will not apply to a property which has been your main home and qualifies for principal private residence for the entire period of ownership.
For non UK residents these rules have been in place since 6 April 2019 for the sale of residential properties and from 6 April 2020 also includes non-residential sales. All property sales by non-residents must be reported regardless of whether there is tax to pay or if a loss has been incurred.
The penalties for failing to report a relevant disposal within the required time frame can be large. Due to Covid 19 HMRC have removed late filing penalties for disposals completed between 6 April 2020 and 1 July 2020.
Please let us know if you have made a disposal that will need reporting via the new system and we can provide further advice on the process.