In a welcome move for residential property owners, the Budget Red Book confirmed that the current 30-day capital gains tax (CGT) payment window will be extended to 60 days
From 27 October 2021 the deadline for residents to report and pay CGT after selling UK residential property will increase from 30 days after the completion date to 60 days.
For non-UK residents disposing of property in the UK, this deadline will also increase from 30 days to 60 days.
This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification.
When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.
Tim Walford-Fitzgerald, private client partner at accountancy firm HW Fisher said: ‘In the small print announced in the Budget, for those selling UK residential property the deadline to file a tax return will be extended from 30 days to 60 days from midnight tonight.
‘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.’