Sold a Property?

HMRC has clarified that, with one exception, a CGT property return must be filed even if the disposal has already been reported on a self assessment return. The government introduced the requirement to report disposals of UK residential property and pay the capital gains tax (CGT) arising within 60 (previously 30) days of completion on 6 April 2020.

It is most unsatisfactory that it has taken HMRC almost six months to reach the decision that, where the SA return has already been filed, the CGT PPD return must still be filed, but on a paper return. However, this decision was somewhat inevitable. It would have been inequitable to excuse some taxpayers from the filing requirement or not to charge penalties when they have been charged to others who filed late.

HMRC will charge penalties and interest. In most cases, the taxpayer will have paid the relevant tax for a disposal in 2020/21 by 31 January 2022. Interest would have stopped running when the payment was made.

ICAEW

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