April 2020: UK Residents Capital Gains Tax Reporting Requirements
Under the current capital gains tax (CGT) regime, CGT is normally payable by 31 January following the end of the tax year in which a gain is made.
From April 2020, UK residents will have to make a payment on account of the CGT due and submit a return within 30 days following the completion of a residential property disposal.
Individuals will need to estimate their total income for the year when making the CGT payment. Where, after utilising the annual exemption, the gain falls within the individual's basic rate band, the gain will be taxed at 18%; gains falling in the higher rate band will be taxable at 28%.
Disposals of residential property will not be subject to the new rules where the gain is covered by:
- Principal private residence relief (PPRR)
- The annual exemption
- Unused losses - note that only losses up to the date of the return can be considered. Where losses are realised later in the tax year a refund of overpaid CGT can only be claimed by submitting a self-assessment tax return.
The payments due within 30 days can be based on reasonable estimates where accurate information is not available. An amended residential property return or self-assessment tax return can then be submitted within normal time limits that will supercede the original residential property return.