Share this content
3

Disposal of Residential Property

Disposal delayed by Covid-19

Didn't find your answer?

A UK resident individual was advised to dispose of the residential property before 6 April 2020, in order to secure Lettings Relief before the changes in legislation came into effect.

Exchange of contracts was all set for the end of March 2020, but due to the lock-down the purchaser was unable to proceed.

Contracts were eventually exchanged after 5 April 2020, and completion will happen next week. However, this delay means the CGT payable will be much higher, as Lettings Relief will not be due and the final period exemption will be reduced to 9 months. In addition, the Gain will now need to be reported, and the CGT paid, within 30 days.

I am aware that HMRC have announced that CGT reports will not be penalised if they are submitted by 31 July 2020, although interest will still be charged on any tax not paid within 30 days.

Is anyone aware of any other announcements regarding a possible relaxation of the rules where ancilliary reliefs are concerned, and where the delay is wholly attributable to Covid-19?

Thanks in advance.