Simplify CGT administration to help increase awareness and understanding

The reporting and payment deadline for the UK property tax return should be extended to 60 days recommends the Office of Tax Simplification (OTS) in its second report on capital gains tax. Another option would be to mandate estate agents or conveyancers to distribute HMRC provided information to clients about these requirements.

Bill Dodwell OTS tax director said: ‘Many people have limited awareness or understanding of capital gains tax. As the tax tends to affect taxpayers on a one-off basis (over 70% of those paying it in the 11 tax years to 2017-18 did so only once in that period) they do not so readily pick up the knowledge and experience that comes from dealing with something regularly. This means it is particularly important that the rules and HMRC’s guidance and processes are intuitive and fit with the practicalities...