Change in Capital Gains Tax for Residential Property
From 6th April 2020, significant changes are being made to Capital Gains Tax reporting requirements on the disposal of residential property. At present, resident personal tax payers require to pay CGT arising from the disposal of residential property by 31st January of the tax year following the year disposal has made. However, the reporting and payment window will be reduced to 30 days. The changes will not affect those persons who are able to benefit from the private residential relief in full. The new requirements will only apply where the capital gain arising is taxable. Accordingly, the changes will have more impact on tax payers selling rental properties or second homes. It is important that, given the restricted reporting window now available, tax payers familiarise themselves with the new changes and complete any required CGT return.