Capital Gains Tax  

Call on govt to extend CGT deadline to limit fines

"We continue to communicate with customers and stakeholders about the policy.”

In its Budget submission, AAT argued the likes of estate agents and solicitors should also be advising clients on the 30-day requirement change but added a change to 60 days would suffice to sort many clients' woes. 

“As we have often said over the last 18 months, we remain convinced that many of the problems associated with this reporting change would be solved by simply doubling the reporting period from 30 days to 60 days. 

“This would still secure increased revenue compared to the previous reporting requirement but doubling the period to 60 days would better reflect the need to reduce frequently encountered challenges for agents and their clients and especially for those who are unrepresented.”

Other bodies had also called for this change earlier this year. The Office of Tax Simplification published a report in May 2021, in which it warned many taxpayers only find out about their obligations after they have sold their property.

But even with adequate awareness and preparation the OTS considered 30 days was still a challenging deadline.

"The government should consider extending the reporting and payment deadline for the UK Property tax return to 60 days, or mandate estate agents or conveyancers to distribute HMRC provided information to clients about these requirements," it stated. 

In the submission, AAT included quotes from its members. One such was from Ann White director of Abacus Accountancy and Payroll Services, who said she understood why HMRC wanted to get money into the coffers earlier, but thought it had not given this "enough thought".

“I took on a client this year, an elderly couple in their late 70s. They sold a property that they’d inherited and had been renting out. Nobody told them of this requirement, and they ended up with a letter from HMRC and were in a total panic. The information just isn’t out there.” 

Mark Harwood, managing director at Michael Harwood & Co Chartered Accountants, added: “The 30-day deadline is very tight when you’re dealing with the sale of a property, which can drag on, only to find out that you’ve got to register, calculate the tax, pay the tax, etc. within 30 days."