From 6th April 2020, there are changes to how capital gains tax(CGT) on residential property is reported and paid.
Rather than at present, where the details are reported in the next tax return and the tax paid the following 31st January, there will only be 30 days to submit a CGT return and make a payment on account of the estimated tax due.
Of course, making a payment mid-way through the year will mean that the exact tax position is unknown – HMRC will therefore accept reasonable estimates of CGT due based on your projected tax position for the full year.
Where there is no chargeable gain (perhaps in cases where main residence relief or lettings relief mean no gain), then a report is not necessary. Gains on foreign residential property in a country covered by a CGT double taxation agreement are also not required to be reported under the new scheme.
The ATT advice is that “Sellers will need to start gathering information and details of historic costs, or dates of occupation well in advance of the sale.”
They also recommend that HMRC make sufficient publicity of the new rules so people can plan ahead, as well as reduced penalties initially as people become familiar with the new rules. Hopefully we will see further details in due course.