Anyone selling a residential property in the UK after April 6 must report it to HMRC and pay any tax due within the far shorter deadline of 30 days.
Those who fail to let the taxman know about any liabilities within this time face a financial penalty on top of paying interest on what is owed.
It’s feared many sellers, such as landlords, could be caught out.
Under current rules, sellers are given until 31 January (or 31 December in the real time tool) in which the gains relate to – for example, someone who sold on 1 April 2014 would not have to report until 31 January ber 2015.
CGT affects properties that have not been used as the owner’s main home, including holiday homes, rental properties and properties that have been inherited.
HMRC is launching a new online service that will allow owners to report and pay any tax owed.
For higher rate payers CGT amounts to 28 per cent of gains on residential property, while basic rate taxpayers pay 18 per cent.
Further changes that will take effect from 6 April are;
- Lettings Relief will be reformed so that it only applies where an owner is in shared occupancy with a tenant;
- The final period exemption will be reduced from 18 months to nine months to better target the exemption at owner-occupiers with one main dwelling. The special rules that give those with a disability, and those in care, an exemption of 36 months will not change.