HMRC have announced that they will not charge any penalties for failure to report Capital Gains on UK residential property within the new 30-day deadline until after July 2020.

From 6 April 2020, Capital Gains Tax (CGT) on all UK residential property sales must be declared by UK residents. A payment on account should be made to HMRC within 30 days of completion. 

Originally any returns not filed by this date were to incur late filing penalties. In a recently published factsheet about the new rules, HMRC have announced that they will implement a ‘soft landing’ period and will not charge penalties for the first three months after the new rules take effect.

UK resident taxpayers now have until 31 July 2020 to report their gains though interest will accrue if the tax is not paid within 30 days. This means that transactions completed on or before 30 June 2020 cannot be subject to late filing penalties.

Source: CIOT

Links to our guides

CGT: Payment of tax
When is Capital Gains Tax (CGT) due? Can I pay in instalments? What are the penalties if I pay late? What are the new rules from April 2020?

Reporting capital gains: How to?
There are different ways that you either can or must report your capital gains depending on whether you are resident, or non-resident and whether you are in or out of Self Assessment.

External link

HMRC factsheet Q&As: Capital Gains Tax (CGT): Important changes to the deadlines for filing and paying CGT on the disposal of UK property