The time limit for making a CGT return and the associated CGT payment on a disposal of UK land and property is now extended from 30 days to 60 days. This takes into consideration feedback from stakeholders, including this Institute, in respect of problems experienced with the 30 day reporting and payment system. It was also announced that the Government will be legislating to assist with the expansion of the dormant asset scheme.
Broadly this will ensure that a disposal for capital gains purposes doesn’t arise simply because a dormant asset has been moved into the scheme. Instead, a capital gain or loss, where there is one, arises only at the point that a person exercises their successful right to a reclaim.
Under the changes to the CGT reporting and payment regime for disposals of UK land and property, taxpayers with a completion date on or after 27 October 2021 now have 60 days to report and pay any tax due on the disposal The reporting and payment date remains at 30 days for transactions completed up to 27 October 2021.
Additionally, according to an email from HMRC, changes have been made to the legislation to help clarify the mixed use property rules. This is to ensure that where a gain arises to UK residents in relation to a mixed use property, that only the portion of the gain that is the residential property gain is to be reported and paid in line with these deadlines.