Draft legislation in the next Finance Bill will introduce significant changes to the reporting of residential property disposals and the payment of Capital Gains Tax (CGT) from 6 April 2020.
Currently non-UK resident taxpayers disposing of UK residential property are required to report the disposal to HMRC within 30 days. The new legislation extends this reporting obligation to UK resident taxpayers and at the same time will introduce a new payment on account regime.
This is yet another attack on buy to let landlords who currently pay CGT on property disposals on 31 January following the end of the tax year in which the disposal took place so this change will be a significant acceleration of the payment date.
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