CGT Returns/Payments on account

If I understand correctly, a disposal of UK property resulting in CGT (say a second home) now has to be reported, and tax paid on account, within 30 days. A really unlucky person completing on 6 April 2020 would have to report and pay in the next fortnight.

Fortunately I’m not in this position but I can’t find how this is actually achieved. I’ve seen references to it being an online form but I can’t find it. HS292 states it was updated 6/4/20 but doesn’t mention the 30 day period at all for UK residents (it does mention that non-residents are subject to 30 days which is now actively misleading).

Does this mean HMRC have learnt nothing from the NRCGT return debacle and we will see another flurry of tribunal decisions when they impose penalties for returns that weren’t or couldn’t be made?

It seems ridiculous to impose very tight deadlines on individuals and then (a) not tell them and (b) make it impossible to comply.

I may have just missed something but then I can’t be alone.

Andrew Goodman
Osborne Clarke LLP

With regard to item (a) of Andrew’s rhetorical (?) question, I suspect those doing the conveyancing may routinely be expected to apprise the vendor of the need to submit a return (and pay the tax).

If the vendor is advised, says that they will do it themselves but don’t, I recognise this could place the conveyancer at risk of a claim by HMRC that they were facilitating tax avoidance.

I believe that, in Spain for example, there is a requirement that the conveyancer withholds the equivalent of any tax that might be payable and pays it to the tax authority. The vendor then needs to claim any relevant reliefs, etc. to obtain a refund. UK law does not go that far, but conveyancers might consider if they could have any responsibility to retain any of the sale proceeds unless they are satisfied the client is not liable for CGT (which would best be established by the firm seeing the return to HMRC).

I suggest the professional bodies should provide guidance to their members on this particular issue.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Please see:


HMRC have announced a relaxation to the reporting deadline.

I believe that you need an HMRC online account to access the new form, but I gather that it is essentially the old structured e-mail that was used for non-resident CGT reporting.

Maxine Higgins
Citroen Wells

Andrew, remember that for CGT a disposal is an exchange of contracts, not necessarily a completion. So the 30 days will run from exchange. A really really unlucky person might have agreed a completion
date a month and a half after exchange of contracts, in which case it is difficult to know where he gets the money from to pay the tax.

Julian Cohen
Simons Rodkin

The report and payment of the CGT is within 30 days of completion, not exchange.

See https://www.gov.uk/government/news/get-ready-for-changes-to-capital-gains-tax-payment-for-uk-property-sales for a press release from earlier in the year, and https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax for further information. Follow the links on the second page for “Report and pay Capital Gains Tax on UK property” which will take you to the relevant information and/or to set up a gateway account to do this.

As Maxine has also stated, HMRC have also relaxed the current position in relation to penalties for late filing, up until 31 July.

Duncan McGowan
Stevens & Bolton

Thanks all.

Julian - while I wouldn’t put it past them, fortunately the wording seems to be “the 30th day following the day of the completion of the disposal”

Andrew Goodman
Osborne Clarke LLP

According to HMRC the 30 days for reporting and paying the tax runs from completion,not exchange, as SDLT used to (now 14 days), however, as you have noted the CGT tax date is exchange, assuming completion is not unduly delayed thereafter. These new regulations are simply a reporting and tax acceleration mechanism. If you exchanged on or prior to 5 April 2020 then you are within the old regime and do not need to file a new style return within 30 days, even if you complete after 6 April 2020. Any exchanges on or after 6 April 2020 will require completion and submission of a new style return. The gain may also need to be returned again on the normal self-assessment tax return since other factors may affect the ultimate tax due, with any tax paid ‘on account’ within the 30 days being taken into account.

Maxine Higgins
Citroen Wells

Julian, the filing date for a return and CGT payment for a UK resident disposing of a residential property is 30 days from “completion” not “exchange” [FA 2019 s 14 & Sch 2 paras 3(1)(b) and 6(3)].

Malcolm Finney

I’m not sure I can agree with Paul’s comments.

The clear onus to file a return and discharge any accompanying CGT amount on disposal of residential property lies with the vendor and vendor alone. The legislation is clear.

The conveyancer I suspect is under an obligation to inform the vendor of his responsibilities in this regard but has no authority to withhold monies from the sale proceeds with respect to any CGT amount due.

It would make sense for the conveyances closer to the deadline for payment to remind the vendor of the need to file a return and effect payment but I do not believe there is any responsibility to check whether payment was in fact made. Failure to do so would not constitute the facilitation of tax avoidance.

Malcolm Finney

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Hi everyone,

I have been running training sessions for local solicitors on this very topic. There is a very good HMRC webinar which you could watch or keep your eyes peeled for my video talk which is soon to go live!

so to clear up confusion.

Tax and reporting has to be done within 30 days of completion.

The tax relevant date is still exchange.

Thus if exchange was on 31 March 2020 and completion (as above) was 6 April - then it will be reportable under the old rules on the 2019/20 tax return.

If exchange was on 8 April and completion on 13 April, then it is caught by the new rules and tax and report to HMRC by 13 May. The client needs a Tax Account set up and then they run through a list of questions (layout is similar to the Trust Register). Once the questionnaire is completed, the form is submitted and an email sent with details of how to pay and the reference number.

If the client was an agent to complete the form, they still need to have a Tax Account and via this can provide authority to a third party. That third party will need to have a Client Account set up - ours is under the same login as MTD and the Trust Register. From there we can complete the form and obtain the payment information.

There will be no penalties levied for completions up to 30 June. Thereafter they will be the same as for Tax Returns ie £100 for late filing.

Many solicitors who I have worked with are making reference to the filing requirement in their LOEs or providing flyers with information. I have also targeted estate agents but with no take up.


https://www.gov.uk/guidance/help-and-support-for-agents#property Link under property section for this webinar which was very informative.

Lucy Orrow CTA TEP
Lambert Chapman LLP

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As Lucy comments the new return and payment rules apply where “exchange” occurs on or after 6 April 2020 for direct disposals of residential property by a UK resident
[FA 2019 Sch 2 para 1(1)(b)].

As per my earlier post return and payment is required 30 days after “completion”; where “completion” occurs at the time of disposal this would bring forward the date of any return/payment to 30 days after “exchange” [FA 2019 Sch 2 para 17(2)].

Malcolm Finney

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This sounds like HMRC defining a cat as a dog then asking whether you own a dog.

The advice throughout is on “selling” a property. That, of course, means, “disposing of” a property. As we know, a “disposal” is a taxable event which, in the case of CGT, is exchange of contracts. So when the advice is on selling, it really is on exchanging contracts. I can’t wait to read the first test case of HMRC v some poor taxpayer whose trap has gone off “snap”.

Julian Cohen
Simons Rodkin

Just to add that, where the disposal is by the executors during an estate administration period, they still have to file the CGT return within 30 days of completion; however, there is currently no mechanism for them to do this via the online system. Instead, you have to call HMRC and request a paper version of the form is sent. I had to do this on Monday and spent quite some time “going round the houses” as none of the HMRC staff seemed to know anything about it! However, I did get someone helpful who said they would see what they could find out and call me back, which they did the next day.

The form to ask for where you have an executor that needs to report is Form PPD CGT. This has now been put in the post to me. Whether I will get the form in time to submit within 30 days of completion is another matter …

Jane Hodge
Charter Tax

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