HM Revenue & Customs issues Capital Gains Tax reminder
HM Revenue & Customs (HMRC) has issued a reminder of recent changes to Capital Gains Tax (CGT) to taxpayers and the impending deadline for reporting profits from sales of residential property in the 2019-20 tax year.
Various changes to how CGT is reported and paid came into effect at the start of the current tax year on 6 April 2020. The changes mean that UK residents disposing of UK residential property that is not their main home and where there is tax to pay should use the online service to declare gains to HMRC and pay the tax within 30 days of completion.
Gains should also be included on a Self-Assessment tax return, but where the tax has already been paid, it will not count towards the Self-Assessment tax liability.
Meanwhile, HMRC is reminding people who made taxable gains in 2019-20 that these must be declared on a Self-Assessment tax return by 31 January 2021.
Karl Khan, Interim Director General for Customer Services at HMRC, said: “The 2019-20 tax year is the last year UK residents will be required to pay the CGT for the sale of properties as part of the Self-Assessment process and we want to make sure they are aware of the new requirements.
“We’re making it easier for customers to pay any tax that is owed. UK residents, including property developers and landlords, should now use the online service to make any CGT declarations immediately after selling a residential property.”