The payment period for capital gains tax (CGT) on residential property has been doubled from 30 days to 60 days.
Despite the measure not being announced by Chancellor Rishi Sunak in the Autumn Budget, it was included in HM Treasury’s Budget publication. The change applies from 27 October 2021.
The deadline also increases from 30 to 60 days for non-UK residents disposing of property in the UK. When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.
These changes come after a recommendation from the Office of Tax Simplification (OTS) and also 18 months of campaigning for this change by the Association of Accounting Technicians (AAT). The changes are to ensure that taxpayers have sufficient time to report and pay CGT.
Phil Hall, Head of Public Affairs and Public Policy at the AAT, said: ‘It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer. Very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.’
“This is a good change that will allow taxpayers to report and pay their CGT with less stress.”
Nigel Holland