With much emphasis in the Budget having been around Universal Credit changes, the increase in National Living Wage and future spending plans, there was some good news hidden in the small print which relates to the UK Property Reporting Service.
Since April 6, 2020, UK residents have had to calculate, report and pay any Capital Gains Tax (CGT) on the disposal of UK residential property within 30 days of completion via the UK Property Reporting Service or ask an agent to do this on their behalf. We welcome the news that these so-called ‘30-day’ reporting rules have been doubled to 60 days.
This real time reporting came in for UK residents just as the pandemic hit which might explain why many taxpayers are unaware of it. Not all UK residential property sales result in Capital Gains liabilities, such as most disposals of a main home.
If you are selling residential property, please speak to us for advice.