HMRC have published proposals for accelerated "on account" payment of CGT on disposals of residential property, requiring an extra return and payment within 30 days of completion.
For details see https://assets.publishing.service.gov.uk/government/uploads/system/uploa....
It is not clear what if any penalties[ as well as interest] will be payable for failure to comply. The consultative paper admits that it will be older taxpayers who are most likely to be liable, but has not addressed the reality of establishing all the historical information and computing the relevant tax within such a short time scale.[ at least nine months earlier than required under current law]
A suitable response to this bureaucratic overkill is the least any of us can do- any views ?
Replies (5)
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Is this another consultation where HMRC just ignores any critical responses and ploughs on as if nothing had happened ?
Non residents are already under a similar reporting regime and most solicitors seem unaware of it. Our non-resident clients are often caught out and have not been warned on completion that they have only 30 days to report. These people often haven't lived in UK for years and are unaware of the new rules and can be hit by large penalties.
Another example of HMRC chasing penalties at the expense of equity.
Presumably part of the continuing drive to hit private landlords, simple as that.
There is no reasonable policy reason to bring in such a narrowly targeted measure.