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Is there a mistake in HMRC CGT instructions?

"30 days allowed to report/pay CGT on your UK property disposals". It should be on residential only

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Agent update 78, page 9 gives a link to the "relatively" new notification and payment arrangements for Capital Gains Tax on property. The overview, 3rd paragrah states that "For UK property disposals made from 6 April 2020, you have 30 days after the property's completion date to report and pay any CGT due on your UK property disposals". However, later on, they correctly state, in the context of a "UK property account" (usable to notify the disposal,) that the report should be of the disposal of UK residential property....... So the 3rd paragraph is only correct in relation to non-residents who have to notify and pay tax up front on both categories of property. (Non-residents must report in this way even if no tax to pay or there is a loss.-no word about residents rights in this regard?)

Firstly, this an apparent mistatement at the beginning of an important notification, am I right?

Secondly, if any particular category of asset is considered to be worthy of unfavourable treatment (earlier payment of tax than on other disposals) why is there this artificial segregation between residential property as opposed to other types of property?

Thirdly, what about UK residents rights as regards CGT losses or (immediate or ultimate) nil tax liabilities?

Why finally, if early tax collecting is the object of the exercise, was preference not given to large sales of shares, antiques, paintings etc.


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By Accountant A
15th Jun 2020 18:14


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By ireallyshouldknowthisbut
11th Jun 2020 16:56

To be fair its only landlords with a high debt ratio they don't like.

If you are mortgage free or have loads of properties, then do carry on.

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By Accountant A
15th Jun 2020 18:16


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By ireallyshouldknowthisbut
11th Jun 2020 17:22

it seems to be spun out of the failed schemes for overseas landlords.

The original plan was to tax them on sale via the solicitor, like SDLT, and ask them to claw it back with a return. This seemed sensible way of scraping some tax from non-residents for whom paying tax in the UK is largely voluntary.

Then for reason of what can only be assumed chronic stupidity by those who make decisions, they decided it was a form to send in later on, not at all connected with the sales proceeds, which of course bent overseas landlords are doing in their droves. Even the legit ones are struggling to fill in a a form they don't know about.

Then someone thought "ah" we could accelerate CGT payments by asking for it up front for all landlords, and as we count tax on a cash receipt basis, that 'extra income' in government eyes. Blow the fact you cant work it out until you know how much income they have for the year.

So then we end up here, with a stupid scheme which is hard to comply with, which the exact people they are trying to catch (people who don't pay their taxes) will ignore.

The competence of the "powers that be" is once again shown out to be poor.

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