New rules have come into force that mean property owners must pay Capital Gains Tax (CGT) much sooner than before
Historically, property owners were able to declare CGT liabilities in their next Self Assessment return, and pay the tax on the following 31st January.
This no longer an option – any tax owed must be paid within 30 days of exchange of contracts for sale.
From 6 April 2020, property owners must inform HM Revenue and Customs of a CGT liability using an online service and pay amounts due within 30 days of selling the property. To meet the 30 day deadline you will need to register for the service well in advance of proceeding with the sale.
In addition to the 30 day return / report you will still need to report the gain on your annual tax return if you normally complete a Self Assessment return.
Late returns and payments will result in penalties and surcharges, although HM Revenue and Customs have hinted that there will be a “soft landing” fro the new rules until the end of June 2020