Reporting Disposals of Second Homes and Rental Properties
Due to COVID-19, HMRC introduced a ‘soft landing approach’ and did not issue late penalties for any transactions completed between 6 April 2020 and 30 June 2020, provided the gain was reported and any tax due paid by 31 July 2020.
From the 1 July 2020 onwards, a seller has 30 calendar days to report and pay the CGT due on the disposal of a residential home that is not the main residence. Transactions completed from 1 July 2020 will be subject to a late filing penalty if they are not reported within 30 calendar days and the tax paid.
HMRC’s online system has also been updated to allow capacitors (someone who helps someone else to deal with their tax) and personal representatives (someone responsible for settling the affairs of someone who has died) to report gains.