From 6 April 2020, UK residents disposing of UK residential property will have new capital gains tax (CGT) reporting and payment obligations. The introduction of a 30-day reporting and payment window, i.e. within 30 days of completion of the sale, marks a significant change to the administration of CGT.
The changes do not apply where a gain is not chargeable to CGT, such as where a gain is covered by private residence relief. The changes will therefore mainly impact on UK residents with second homes or rental properties.
The general rule will be that within 30 days of the completion of a disposal of UK residential property by an individual, trustee or personal representative, on or after 6 April 2020, a return (‘residential property return’) and a payment on account must be made in respect of the disposal.