30 SECOND TAX SPEED READ - CGT PAYMENT ON ACCOUNT FOR RESIDENTIAL DISPOSALS
Residential disposals made by UK residents will require CGT to be paid to HMRC with a tax return within 30 days of completion (much like the rules already in force for non-resident sales of UK residential property). Under current tax rules, the sellers simply pay the CGT when submitting their tax return for the period in which the disposal occurred.
So, the move to a payment on account (in advance of the filing of the tax return for that period) prevents the tax payer having use of that cash in the interim.
Effective for disposals on or after 20 April 2020.
Property Solicitors should ensure that their clients are fully aware of their obligations and have access to tax support to assist with any issues around the filing of the tax return. Late payment will attract interest and quite stiff penalties if it follows the non-resident rules. Ensure clients don’t rack up penalty charges.