The deadline to report and pay Capital Gains Tax (CGT) has been extended from 30 days to 60 days.

Chancellor of the Exchequer Rishi Sunak announced the change in his Autumn Budget 2021 in October and it takes immediate effect on completions made on or after 27 October 2021.

It gives taxpayers twice as much time to report and pay the tax after selling property in the UK.

It was also clarified that when mixed-use property is disposed of, the 60-day window will apply only to the residential part of the property gain.

For non-UK residents disposing of any type of property in the UK, whether directly or indirectly owned, the deadline also increases from 30 days to 60 days.

The Chancellor also announced:

  • A £24 billion pot earmarked for housing, including £11.5 billion for up to 180,000 affordable homes, with brownfield sites targeted for development
  • A four per cent levy will be placed on property developers with profits over £25 million to help create a £5 billion fund to remove unsafe cladding

For any advice on tax on property transactions and income, please contact us.