Capital Gains Tax 60-day Limit
The deadline for paying any Capital Gains Tax (CGT) due on the sale of a residential property is now 60 days. The previous 30-day limit was replaced as part of the Autumn Budget measures in October and the change came into effect on the day of the announcement (27 October 2021).
This means that a CGT return needs to be completed and a payment on account of any CGT due should be made within 60 days of the completion of the transaction. This applies to UK residents selling UK residential property where CGT is due.
In practice, this change only applies to the sale of any residential property that does not qualify for Private Residence Relief (PRR). The PRR relief applies to qualifying residential properly used wholly as a main family residence.
HMRC has listed the following types of property sales that are affected:
- 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.
There can be penalties and interest if any CGT due on the sale of a UK property is not paid within the stated 60-day time limit. There are separate rules for non-UK residents.