10th December 2020 Posted by - Alexander Accountancy
HMRC has issued a press release to remind taxpayers that have sold a residential property, which was not their main home, during the 2019-20 tax year that the payment date for any Capital Gains Tax (CGT) owed is 31 January 2021.
Due to the impact of Coronavirus, there are options available to defer payments due on 31 January 2021 and pay by instalments over 12 months. This includes a self-serve Time to Pay facility online for debts up to £30,000 or by arrangement with HMRC. Interest will be applied to any outstanding balance from 1 February 2021.
The payment of CGT only applies to the sale of any residential property that does not qualify for Private Residence Relief (PRR). The PRR relief applies to a qualifying residential properly used wholly as a main family residence.
CGT is normally due on property sales such as:
- a property that you have not used as your main home;
- a holiday home;
- a property which you let out for people to live in;
- a property that you’ve inherited and have not used as your main home.
The CGT reporting and payment date for UK residents that sell a residential property changed from 6 April 2020. This change means that any CGT due on the sale of a residential property now needs to be reported and a payment on account of any CGT due made within 30 days of the completion of the transaction.
