Don’t forget the new 30-day window to report disposals for CGT payment

If you are in the process of considering disposing of residential property on or after 6 April 2020 new rules introduced by HMRC mean that if any gain is made you are under a duty to report and pay the Capital Gains Tax within 30 days of the disposal. The disposal is the date the legally binding contract is made. If you fail to report and pay for the CGT, HMRC will trigger a penalty payment and interest will be charged on the unpaid CGT.

It is worth noting that the new rules apply to trustees of trusts for UK residents that dispose of UK residential property.

If you are selling a dwelling-house or part of a dwelling house which is your only main residence, then you will be entitled to principal private residence relief and the 30-day deadline is disapplied. This will include the garden land of up to 0.5 hectares, larger gardens can be included if they are proportionate to the size of the dwelling. A holiday cottage in the grounds of the dwelling house will be caught and will need to be reported.