The Chancellor extended the deadline from 30 days to 60 days from midnight last night
Chancellor Rishi Sunak’s decision to extend the deadline for capital gains tax (CGT) to be paid on UK residential property has been welcomed by accountants and property professionals.
Revealed in the small print of the Budget yesterday, the Chancellor extended the deadline from 30 days to 60 days from midnight last night.
The 30-day window for payment was introduced in April 2020. Before that, sellers could report their gains in a self-assessment tax return in the year that followed the property sale.
The Treasury’s decision follows advice given in the Office of Tax Simplification’s May 2021 report that suggested there should be an increase in the 30-day deadline.
It described the deadline as “challenging” even for sellers who were aware that the short payment window existed. The extended deadline applies to gains made by UK and non-UK residents.
Tim Walford-Fitzgerald, private client partner at accountancy firm HW Fisher, said: This is welcome news and it is positive to see that the Chancellor has recognised the reality of these transactions. To anyone selling a property and up against tight deadlines to receive registrations you can breathe easy.
The National Residential Landlords Association (NRLA) also welcomed the change.
Firms connected to the private rental sector breathed a sigh of relief that the Chancellor decided not to increase the rate of CGT.
Richard Davies, head of lettings at Chestertons, said: The tax rise could have presented the final tipping point for landlords to sell their portfolio. The avalanche effect of this would have meant a subsequent decrease in rental properties during a time when UK tenants are already facing a shortage of suitable homes within their budget.