Landlords have been given longer to pay their Capital Gains Tax (CGT) on residential property gains from 30 to 60 days, Chancellor Rishi Sunak has announced in his Autumn budget.

The measure, which takes effect immediately but was hidden in the budget statement’s lengthy accompanying detail, applies to UK residents who are selling residential property within England.

For non-UK residents disposing of property in the UK, this deadline will also increase from 30 to 60 days.

“This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification,” the Chancellor’s post-budget guidance says.

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“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.”

Previously, those reporting and paying tax on CGT had much longer – until the end of the tax year.

The Association of Accounting Technicians (AAT) says it has been lobbying for the past 18 months for this change.

It has highlighted member concerns that 30 days was not long enough, saying: “The process is reliant on clients setting up a CGT account online – which can take at least two weeks – within 30 days,” says its Head of Public Policy Phil Hall.

“Agents are not able to do this for their clients, which means this deadline is often missed, particularly around Christmas.

“It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer.

“I am very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.”


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