HMRC is consulting until 6 June 2018 on the introduction of a new requirement to make a payment on account of CGT due on disposals of residential property within 30 days of completion. Originally announced in 2015, the government confirmed at Autumn Budget 2017 that the start date for the new requirement would be April 2020.
Under the new scheme, payment will be due within 30 days of the completion of the disposal, rather than alongside other payments of CGT and income tax. The consultation considers:
how the amount payable will be calculated;
the administration of those payments; and
extension of the existing CGT payment-on-account system for disposals by non-residents to require payment within 30 days, irrespective of whether the non-resident person makes self-assessment returns or pays ATED charges.
Since most sales of main residences attract principal private residence relief, the changes are mainly going to apply to sales of second homes and let property.
HMRC is consulting until 6 June 2018 on the introduction of a new requirement to make a payment on account of CGT due on disposals of residential property within 30 days of completion. Originally announced in 2015, the government confirmed at Autumn Budget 2017 that the start date for the new requirement would be April 2020.
Under the new scheme, payment will be due within 30 days of the completion of the disposal, rather than alongside other payments of CGT and income tax. The consultation considers:
how the amount payable will be calculated;
the administration of those payments; and
extension of the existing CGT payment-on-account system for disposals by non-residents to require payment within 30 days, irrespective of whether the non-resident person makes self-assessment returns or pays ATED charges.
Since most sales of main residences attract principal private residence relief, the changes are mainly going to apply to sales of second homes and let property.
