CGT 30-day payment loophole

Anyone disposing of UK residential property that hasa CGT liability must report and pay the tax within 30 days of completion since the changes effective from April 2020. However, for transactions taking place towards the end of the tax year there is an opportunity to delay payment.  

The date of exchange is relevant for the tax return reporting, but the 30-day countdown starts when the property transfer completes. This means that where contracts are exchanged during 2020/21, but completion does not take place until 7 March 2021 or later, the 30-day deadline falls after 5 April 2021. It is therefore possible to submit their 2020/21 tax return and, providing this is done before the 30-day deadline, there is no need to report the gain separately or pay the tax within 30 days.

The tax payment deadline will then be deferred until 31 January 2022, and it will save the time, cost, and hassle of reporting it within HMRC’s Capital Gains Tax on UK property account. It also allows the individual to adjust their July payments on account.