CGT 30-day reporting and payment from April 2020 – testing the system

HMRC is developing a new system for reporting and paying capital gains tax (CGT) on UK residential property. The requirement to report and pay tax on such gains within 30 days of completion comes into force on 6 April 2020.

HMRC is recruiting agents and their clients to test the system in advance of the start date. The testing will include setting up the client’s CGT account and authorising the agent in the live system, but not the reporting of transactions. Separate agent authority will be required to act for a client for this service; authority for income tax self assessment will not be sufficient.

Details of how to participate, including the HMRC email address to contact, are included in the attachment below. Clients who volunteer should be anticipating making a sale of UK residential property on which CGT will be due after 5 April 2020. Testing started on 6 January 2020, but agents can ask to defer their involvement until after the self assessment deadline.

The new rules were explained in an article by Rebecca Benneyworth in the August 2019 edition of TAXline and further detailed guidance will be published in due course. The new requirements do not apply to transactions on which no tax is due (eg, where the gain is fully covered by private residence relief).

The Tax Faculty would be interested to receive feedback on the service – please contact caroline.miskin@icaew.com.

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