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The Chartered Institute of Taxation is reminding owners with taxable gains on their residential properties to plan for a ‘seismic change’ in how tax is paid.
From 6 April, UK residents who sell a residential property that gives rise to a capital gains tax liability must send a standalone online return to HMRC and pay the tax due within 30 days of completion of the sale.
John Bunker, chair of institute’s private client UK committee, said: ‘It is essential that people plan ahead to meet the new deadline or risk penalties. Property owners need to have their records up to date in advance of the sale so that the 30-day deadline can be met and penalty charges avoided. In some cases, professional valuations may be needed’.
The CIOT expects more details on how the new system will work before 6 April 2020.
