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More time for 30-day reporting of CGT

9 April: HMRC has confirmed it will not charge late filing penalties for reports of capital gains tax (CGT) on disposals of UK residential property by UK residents made by 31 July 2020.

The announcement came in a question and answer factsheet shared with ICAEW’s Tax Faculty and which can be downloaded here. The information has not yet been published on gov.uk, but has been confirmed by HMRC.

HMRC stated:

“To help those selling properties familiarise themselves with the change in the rules and a new on-line process, HMRC is allowing a period of time to adjust and will not issue late filing penalties for CGT payment on account returns received late up to and including 31 July 2020.

“For UK residents, this means transactions completed between 6 April and 30 June 2020 and reported up to 31 July 2020.

“Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days.

“Interest will accrue if the tax remains unpaid after 30 days.”

ICAEW Tax Faculty notes that although more time has been allowed and late filing penalties will not be charged, interest will still run on the CGT due, so filing and paying as soon as possible is still recommended. The easement appears to apply to UK residents only; the reporting requirement is not new for non-residents and late filing penalties will apply.


HMRC's factsheet provides answers to questions, including:

  • I'm a UK resident and I want to sell a residential property in the UK, what's changing?
  • What if I don't live in the UK?
  • What do you mean by a UK residential property?
  • Are all disposals of UK residential properties within these new rules?
  • When do I have to tell HMRC and pay the CGT?
  • What do you mean by taking a 'flexible approach'?