Reporting on residential capital gains tax

From 6 April 2020 any gains made on the sale of chargeable residential property must be both paid (by a ‘payment on account’) and reported to HMRC through a UK property disposal return within 30 days of completion. On first glance this appears to be a simple obligation – it is a clear requirement which should not have caused many problems technically. Further the tax is not due until after completion – rather than exchange – when the disponer has normally already received the proceeds unless the disposal was a gift. So unless the disposal had been made at a significantly reduced consideration from market value the funding of the tax should also not have been problematic.

However taxpayers agents and HMRC have encountered several issues associated with this supposedly simple requirement with common issues including how to deal...