Commentary

C1.111 Payment of tax due on chargeable gains by instalments

Capital gains tax
Capital gains tax | Commentary

C1.111 Payment of tax due on chargeable gains by instalments

Capital gains tax | Commentary

C1.111 Payment of tax due on chargeable gains by instalments

For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.104, C1.103 and C1.102 respectively.

Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.

For a discussion of the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107. For details of how to report chargeable gains to HMRC, see C1.109 and C1.110.

Payment of tax due on chargeable gains—general rule

Corporation tax due on the chargeable gains of companies is generally payable within nine months from the end of the accounting period1. See D1.902 and D1.1320. However, large companies and very large companies are subject to quarterly corporation tax instalments2. See D1.1328.

Any capital gains tax payable by individuals, trustees and personal representatives is generally due by 31 January following the end of the tax year3. See E1.250.

This does not apply to the capital gain tax due on the disposal of UK land. The FA 2019, Sch 2 compliance regime requires certain taxpayers who dispose of UK land to make a capital gains tax UK property disposals return to HMRC and to make a payment on account within 30 days of completion4. See C1.110.

However, there are two situations in which the tax due can be paid

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