Since 6th April 2020 the 30-day window for capital gains declarations has been applied, HMRC, on the other hand, has already submitted £1.31 million in late filing penalties for undeclared revenue from asset sales in UK.
HMRC issued 13,113 late filing fines to second homeowners and landlords across the country in the second half of 2020, asking unreported capital gains statistics.
Since April 6,2020, when Capital Gains Tax (CGT) is due on the sale of a UK residential property, the period for filing a report and paying the tax has been shortened to 30 days from the date of the sale’s completion
This aligns the dates for UK taxpayers with the deadlines already in place for non-UK residents, despite the fact that non-UK residents are obligated to file a return regardless of whether any tax is owed.
If any tax owed was paid by July 31,2020, HMRC lowered the £100 late filing penalty for late capital gains tax declarations until June 30, 2020.
Late filing penalties have been widespread among landlords and second homeowners who missed the 30-day deadline to record capital gains on UK property from August 2020.
“Moving consumers closer to real-time transactions helps guarantee they still have money available to settle their CGT liability,” an HMRC official stated.
“We don’t want to collect penalties; instead, we want to assist clients in filing their taxes correctly. That is why, in order to assist clients in becoming accustomed with the new requirements, we took a tolerant approach to fines and did not impose late filing penalties for CGT payments on account returns.”
Individuals may formally disclose any gains and subsequent capital gains tax in their self-assessment tax returns at the conclusion of the tax year. This gave people almost a year before they had to declare and pay their CGT bills in some situations.
Anyone facing a capital gains late filing penalty can appeal to HMRC if they have a justification for missing the 30-day reporting deadline. In these cases, HMRC has indicated that Covid-19 will be accepted as a legitimate cause.
Capital gains tax reporting and legislation are both complicated. With so many reporting and payment dates, as well as various reliefs and exemptions that might save you a lot of money, it’s critical to get professional help when calculating your capital gains tax.
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