The proposed change to the administration and payment of capital gains tax on the disposal of residential properties is due to come into force from 6th April 2020.
From this date, where CGT is due on a residential property disposal a return will need to be filed with HMRC, and also the CGT must be paid within 30 days of the date of completion. Where a property comprises both residential and commercial, the gain arising must be apportioned on a just and reasonable basis.
For UK resident individuals and trustees, a return will need to be filed with HMRC where a disposal of residential property gives rise to a chargeable gain or an allowable loss, unless the gain is fully covered by a relief such as the principal private residence relief, or where the gain is covered by the annual exemption, or by losses brought forward.
Whilst legal advisors should be aware of this change in filing and payment requirements, ultimately the responsibility, as always, will be on the taxpayer to ensure compliance.