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capital gains tax (cgt)  •  Personal Taxation  •  Property  •  tax returns

CGT deadline extended to 60 days

By RJP LLP on 2 November 2021

One of the hidden changes in the Autumn Budget 2021 was confirmation that the deadline for submitting a tax return and paying any capital gains tax (CGT) due on disposals of UK residential property has been extended to 60 days.

Previously the deadline was 30 days, but all disposals completed on or after 27 October 2021 must be reported to HMRC with any tax due paid 60 days after the completion date. Note that transactions completed before 27 October 2021 must still adhere to the old 30-day deadline.

We have written about this policy on many occasions to remind clients of their obligations. This is a welcome change and will give vendors much needed breathing space, especially if they have complicated tax affairs.

Change on CGT policy for mixed use property

Another change to the existing policy on CGT was the amendment that for mixed-use properties disposed of by UK residents, only the portion of the gain that relates to the residential part of the property needs to be reported and tax paid to HMRC within 60 days.

No other changes to the capital gains tax regime were announced but this tax is being reviewed by the Office of Tax Simplification (OTS) and we can expect updates in the future. Based on recommendations by the OTS, CGT could be more closely aligned to income tax rates and there may be a review of business asset disposal relief (previously entrepreneurs’ relief) and investors’ relief.

We monitor all developments closely and will update you about any future tax changes as soon as they are announced.

For help and advice with tax planning, contact partners@rjp.co.uk.

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60 Day Deadline for CGT Returns and Tax Payments

If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.