Solicitors and conveyancers have been reminded that the window to report and pay capital gains tax on the disposal of residential properties has been doubled.
The change – announced by the Chancellor in the Autumn Budget – extends the time limit for making capital gains tax returns and associated payments on account when disposing of UK land and property.
It means vendors will now have 60 days to deliver a capital gains tax return to HM Revenue & Customs (HMRC).
The tax authority said the move will give taxpayers more time to “produce and provide accurate figures, particularly in the more complex cases”, as well as sufficient time to engage with advisers.
The move applies to all residential properties that were disposed on or after Wednesday 27 October 2021.
Mixed-use properties
HMRC has also published updated guidance on reporting and paying capital gains tax on the disposal of mixed-use properties – defined as a property that has both residential and non-residential elements.
The notice clarifies that, where a gain arises in relation to a mixed-use property, only the portion of the gain that is the residential property gain is to be reported and paid.
Advice for non-residents
Non-residents may have to submit a tax return even where there is no CGT to pay or where the property is not residential.
For help and advice with related matters, please get in touch with our legal finance team today.