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According to HMRC’s figures, approximately 20% of taxpayers, who had gains to declare from UK residential property, failed to report and pay the capital gains tax (CGT) due on time in 2021/22.
The CGT 30-day reporting and payment system for UK residential property came into effect on 6 April 2020, right in the middle of the Covid-19 pandemic, and with little publicity from HMRC.
Although late filing penalties for missing the 30-day deadline were waived for the first three months, and the filing period was doubled to 60 days with effect from 27 October 2021, the number of taxpayers who missed the deadline grew.
Scale of the problem
The latest CGT statistics show that approximately 137,000 UK property returns were submitted for residential property disposals in 2021/22, and HMRC estimates that 26,500 of those returns were filed late – nearly 20% of the total. In 2020/21 the volume of disposals was suppressed by pandemic, but 28% of the UK property returns were filed late.
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