Landlords back call for reform to CGT payment rules
Responding to a report published this afternoon by the Office for Tax Simplification (OTS) which recommends that the Government should extend the deadline for the payment of Capital Gains Tax from 30 to 60 days following disposal of a residential property, Chris Norris, Policy Director for the National Residential Landlords Association said:
“Landlords should always ensure they meet all legally required deadlines to pay tax. That said, today’s report from the Office for Tax Simplification demonstrates a woeful lack of communication and consideration by HMRC about what is expected of those liable for the tax. It adds weight to the argument that the seemingly arbitrary, 30-day deadline has created more problems than it solves. We would support the OTS in recommending an extension to 60 days to avoid landlords missing a shorter deadline, potentially through no fault of their own.”
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Notes:
- The Office for Tax Simplification has today published its report: “Capital Gains Tax – second report: Simplifying practical, technical and administrative issues.” It can be accessed here. Page 10 notes:
“The requirement to report taxable gains on a UK residential property disposal within 30 days is a very ambitious target for many taxpayers – as indicated by the fact that a third of the initial returns received took longer than 30 days to arrive. This concern was also reflected in the overwhelmingly negative response that this policy received in the Call for Evidence.
“Many taxpayers only find out about their obligations after they have sold their property. But even with adequate awareness and preparation the OTS considers that 30 days is still a challenging deadline.
“The government should consider extending the reporting and payment deadline for the UK Property tax return to 60 days, or mandate estate agents or conveyancers to distribute HMRC provided information to clients about these requirements.”
