On account paymemt of CGT on resi property

HMRC proposals for accelerated payment of CGT on disposal of residential property unreasonable?

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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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RLI
By lionofludesch
15th Apr 2018 10:57

Is this another consultation where HMRC just ignores any critical responses and ploughs on as if nothing had happened ?

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By gerrysims
15th Apr 2018 11:25

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.

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RLI
By lionofludesch
15th Apr 2018 11:33

We won't need taxes soon.

The entire country will be funded by penalties.

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By Accountant A
15th Apr 2018 11:50

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.

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By Montrose
16th Apr 2018 18:23

The proposals will hit all second homes, including holiday homes outside the UK. The draft proposals [para 3.6]for dealing with local taxes do not address the practice of Notaires in France, for example, of withholding proceeds until local taxes have been settled- leaving a cash deficiency in the UK.

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