CGT: Payment On Property Disposal Time Limit Extended

As reported quite widely, Rishi Sunak announced an extension to the Capital Gains Tax reporting and payment deadline. This will be welcome news for anyone intending to dispose of a residential property that is not their home ...

The measure also clarifies that for mixed-use properties, Captial Gains Tax is only due on the residential part of the disposal. This is welcome news, especially where the case is quite complex and more time is needed to engage with advisors.

"Earlier in the year, the Office of Tax Simplification made a number of recommendations!"

One of these measures was the extension from 30-days to 60-days and it was announced in the Autumn Budget 2021 by Chancellor Rishi Sunak. The extension only applies to disposals of land or property completed on or after the 27th of October 2021.

The extension is expected to impact a great many property transactions, although HMRC says over 75,000 individuals, trustees, and personal representatives of deceased persons will feel the most significant effects.

It's interesting that HMRC itself says that older persons may be impacted more than the younger generation as they are more likely to dispose of property relevant to this measure!

It seems that one of the reasons HMRC is doing this is to reduce the number of enquiries they get about Capital Gains Tax. They believe that giving those disposing of property longer to pay means less of a need for them to be contacted as they'll have more time to engage with their advisors and get good tax advice.

Anything that gives us more time to pay tax is a positive outcome in my book.


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