New Capital Gains Tax time limits and COVID-19 tax guidance summary

The Law Society recaps new Capital Gains Tax time limits and COVID-19 tax guidance summary after earlier updated HMRC information.

Extension of the Capital Gains Tax (CGT) reporting and payment deadline

First is a reminder of the welcome extension to the reporting and payment deadline for paying any capital gains tax (CGT) due on UK land and property sales.

The deadline has been extended from 30 days to 60 days.

If the completion date for the disposal was:

• on or after 27 October 2021 – UK resident taxpayers have 60 days from the completion date to report and pay tax on a disposal of a UK residential property that results in CGT to pay (where a gain is realised on disposal of a holiday home or other property in the UK that is not used as the taxpayer’s main home)
• before 27 October 2021 – UK resident taxpayers still have 30 days from the completion date to report and pay tax on a disposal of UK residential property that results in CGT to pay

Taxpayers can report and pay any tax due through HMRC’s online service

There are special rules for CGT reporting by non-residents disposing of UK property or land, who may have to submit a tax return even where there is no CGT to pay or where the property is not residential.

Read more about CGT rules for non-residents.

COVID-19 tax guidance summary

Secondly, we highlight a useful summary of some of the COVID-19 guidance published by HMRC since March 2020.

As well as this summary, HMRC’s Update includes links to relevant material including:

• guidance on employees coming to work in the UK from abroad
• guidance on tax on UK income if you live abroad
• materials about how HMRC expects the statutory residence test and the domicile and remittance rules and other international tax rules to be applied in the context of the pandemic

Read HMRC’s Agent Update (17 November).

Kindly shared by The Law Society of England and Wales

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