Capital Gains Tax rules are changing!

Capital Gains Tax, News,

From 6th April 2020, the due date for Capital Gains Tax relating to the sale of residential properties is changing. Rather than becoming due by the 31st January of the year after it arising, payment will be due just 30 days after the sale’s completion date.

This change is another step in the acceleration of tax payment dates for Capital Gains Tax due on gains from UK Property. The idea behind this programme is to reduce the lead-time for HMRC to receive the tax due.

Is this a good thing?

For some people, we’d definitely say yes!

Many people take the opportunity of the longer payment cycle to spend the tax elsewhere in the meantime. This often causes a problem when the due date comes around.

With the new rules, the opportunity to commit the tax elsewhere is limited.

It’s also a good thing for HMRC. The new rules will mean that they get their funds far earlier. Historically a deal could complete on the 6th April 2019 and the tax wouldn’t have been payable until the 31st January 2021.

Is this a new programme?

No. This is a further step in an existing programme, which has already seen certain non-resident landlords affected by a similar approach. This was implemented in 2015, so has been in place for some time.

Does this affect UK landlords?

Yes – From 6th April 2020, UK landlords need to calculate if there is a Capital Gain. If there is, they must submit a property disposal return independently of their Tax Return, and pay over any Capital Gains Tax that they feel may arise. At the end of the tax year, the landlord’s full income, gains and losses can be calculated, and any adjustment made to the Capital Gains Tax paid.

What action should taxpayers take?

Tell us about any residential property sales as soon as they are agreed. We will calculate any tax due and submit the property disposal return to HMRC within the allowed 30 days. We’ll also include the details in your Tax Return, and reclaim any overpaid amounts.


If you’d like to know more about Capital Gains Tax, or these new deadlines, please get in touch. We’re here to help!