Non-Resident Capital Gains Tax Returns – penalties eased

30th June 2017

Since April 2015 non-residents selling UK residential property have been required to report the disposals within a Non-resident Capital Gains Tax return within 30 days of the conveyance.  You can view HMRC’s guidance here

The timeframe is very tight – some may think unreasonably so, especially since many individuals are unaware of this requirement until they contact us for advice on their tax position, often long after the 30 day time limit has passed.

Whilst we can act quickly, penalties for late submission inevitably ensue, even where no tax is payable, perhaps due to the availability of reliefs.  And these penalties can be substantial – a fixed penalty of £100 at the very least , plus daily penalties of £10 if the return is more than 3 months late. We have seen a number of hefty penalties notices issued, completely disproportionate to the amount of tax involved.

Following repeated representations from agents, tax-payers and professional bodes, HMRC have finally relaxed their position to some degree.  They have announced that they will no longer charge the £10 daily penalties and that past penalties will be withdrawn.  Whether they will automatically rescind penalty notices previously issued and repay amounts settled is not clear, however.  I suspect that those affected will need to instigate repayments by contacting HMRC.

If you need advice on your UK tax compliance obligations as a non-UK resident, please contact our private client tax department.

Other items in Blogs
Ellen Carter
11th August 2022 Revisit your remuneration?

For many SME owner-managed businesses, the tax optimum director remuneration structure for many years has been one of a low salary accompanied by high dividends. This allows Companies to take advantage of low dividend tax rates and, in many cases, no employers national insurance to be paid by the company (if paid at the Secondary…

Jaimie King
10th August 2022 Seeing Double: New Recovery Loan Scheme begins

While one government-backed Recovery Loan Scheme (RLS) ends, another opens.   The previous RLS closed on 30th June 2022, but to follow this the government have introduced a new RLS scheme to support businesses through the out-turn of the pandemic, expected to be accessible after 1st August 2022.   The New Recovery Loan Scheme Government…

Charlie Whittle
10th August 2022 Annual Allowance for NHS pensions

What is the annual allowance? The annual allowance for the 2022/23 tax year is £40,000 and each year this is compared with your pension input amounts. Your pension input is defined as the increase or growth in the capital value of your NHS pension benefits across all pension schemes. Any growth in excess of the…

Jake Day
8th August 2022 TRS Registrations: This deadline may apply to you

  1st September 2022 – This deadline may apply to you!   If you hold property or investments on behalf of another person, HMRC may consider this as a reportable trust arrangement. This may mean that you need to register on the Trust Registration Service (TRS) before 1st September 2022.   New legislation now in…

Megan Turner
4th August 2022 Charity Commission annual return: Planned Changes

The Charity Commission has launched a consultation regarding changes to the annual return.   There are a number of new questions, taking the total questions from 36 to 52, although only 32 will be compulsory. The aim of the new questions is to make the annual return more comprehensive, by gaining information around charity’s income…

Ben Beech
3rd August 2022 MP’s call for Government to Introduce Essential User Rebate

The All-Party Parliamentary Group for Road Freight and Logistics has today (27 July 2022) urged the Government to approve the introduction of an Essential User Rebate of no less than 15 pence per litre for operators within the logistics sector to combat the effects of soaring fuel prices and inflation.   The call has come…