Introduction
- In the Autumn budget, the chancellor increased the deadline for reporting capital gains tax on residential property disposals.
- This was extended from 30 days to 60 days on disposals from 27 October 2021, onwards.
- The reason for this was to allow time for taxpayers to arrange valuations and to calculate the tax reportable to HMRC.
- If property was sold between 6 April 2020 to 26 October 2021, you would have been required to report and pay the CGT within 30 days
HMRC Advice
- 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.
- It is not possible to file a CGT property return online after a SATR has been filed.
- A paper return will need to be filed in this instance.
- The only exception is where the SATR is filed within 60 days of completion of the property transaction (ie, before the deadline for the CGT PPD return).
- In that situation, it is not necessary to file a CGT PPD return.
- HMRC will charge interest and penalties, however, if the disposal was declared on the 2020/21 return, interest will not apply if the correct tax has been paid via self-assessment.
CGT Allowances
For the tax year 2022/23, the capital gains tax allowance has been frozen as shown in the table below:
| Tax Year | 2021-22 | 2022-23 |
| CGT allowance – individuals | £12,300 | £12,300 |
| Couple’s allowance | £24,600 | £24,600 |