Capital Gains Tax Reporting Extended to 60 Days

The deadline for capital gains tax returns on a disposal of UK homes has been extended from 30 to 60 days.

The Autumn Budget has made changes to disposals of UK residential property that complete on or after 27th October 2021. The reporting and deadline will now be 60 days after the completion date.

Disposals that were completed before the 27th October 2021 will still follow the previous 30-day deadline.

The Autumn Budget also confirmed that mixed-use properties disposed of by UK residents will only have to report the portion of the gain that related to the residential part of the property.

The 30-day deadline proved challenging since its introduction in 2020, as is welcomed by many. Doubling the deadline will provide much needed breathing room for tax payers and advisers, particularly those who have complicated disposals.

To set up a capital gains tax on a UK property account, you will need a Government Gateway login. This had proven challenging for overseas residents given the previous 30-day deadline, but now all taxpayers will have time to set up and report disposals on UK property accounts.

Additional recommendations are also hoped to be implemented, including a potential closer alignment between rates of income and capital gains tax, reform to the business asset disposal relief and a scrapping of the investors’ relief.

We will continue to update you if and when any of these recommendations come to pass.