From 6 April 2020, the due date for payment of any CGT (Capital Gains Tax) arising from the sale of any residential property will be 30 days from the date of completion. This is a significant change.  Previously the CGT due date would have been  31 January following the tax year of sale.

What it means for homeowners?

Anyone selling a residential property will have to calculate any CGT due and pay it within 30 days of receiving the sale proceeds. For most, the sale of their home will be exempt from CGT, but for residential landlords or clients where perhaps the house was not always their home then CGT is likely to be due.  The calculations can sometimes be complex and this shift in the due date puts additional pressure on you, the seller, to get the tax calculated correctly and paid promptly to avoid interest and penalties.

It is possible that your conveyancing solicitor may provide tax advice, but this is often the exception not the norm, and HMRC do provide guidance on this topic . If you would like our assistance in calculating your CGT tax liability, preparing your return and filing it with HMRC, please do get in touch.