Disposals of UK land ― capital gains tax compliance regime

By Tolley
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The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Disposals of UK land ― capital gains tax compliance regime
  • Background
  • Scope of the provisions
  • Reporting the disposal of UK land
  • Payment of capital gains tax
  • Interaction with Self Assessment regime

Background

When the non-resident capital gains tax (NRCGT) rules were first introduced in respect of residential property in April 2015, for compliance purposes non-residents were divided into two groups: those within Self Assessment and those notwithin Self Assessment.

Whilst both groups needed to file a NRCGT Return within 30 days of the conveyance of the property, only those outside of the Self Assessment regime were required to make a tax payment by the same deadline. Those within Self Assessment did notneed to make a tax payment until the normal due date under Self Assessment (ie 31 January after the end of the tax year). Understandably, this led to confusion for both taxpayers and advisers.

In Autumn Statement 2015, the Chancellor announced that a 30-day deadline would be introduced for the payment of capital gains tax due on UK residential property disposals, with a view to this being legislated in FA 2017. However, this proved more difficult to legislate than expected and so the implementation was pushed back further and further until it was finally codified in FA 2019, along with the extension of the NRCGT regime to non-residential properties.

Note that this new regime should notbe confused with the real time transaction tax return , which is a voluntary means of reporting the chargeable gain or allowable loss straight after the disposal. Such a Return can be filed at any time up to and including 31 January after the end of the tax year in which the disposal was made. For more details of this voluntary reporting, see the Simple assessments guidance note.

Note that for clarity, this guidance note uses the non-statutory terms ‘UK land capital gains tax compliance regime’ and ‘UK land Return’ when discussing the provisions in FA 2019, Sch 2 to avoid confusion with the Self Assessment regime and the Self Assessment Tax Return.

Scope

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