Payments on account required from April 2020.
A payment on account of capital gains tax will need to be made when a residential property is sold from April 2020.
Payment will be due within 30 days of completion and the seller will have to submit a ‘payment on account’ return at the same time.
The changes affect those selling a second home or rental property. They will not apply to disposals covered by only or main residence relief. However if only some of the gain is covered a payment on account and return will need to be made for the taxable part.
The changes also apply to overseas property sales. So a payment on account will need to be calculated when a UK resident sells a residential property abroad. That is unless the gain on the disposal will also be taxed in that country and double taxation relief is available or the gain would...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.