ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. Careers

    Access current vacancies and understand what it’s like to work here at ICAS.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Find a CA
  • Careers
  • Contact us
  • Become a CA
  • CA jobs
  • SCABA
  • ICAS Foundation
  1. Members
    1. Become a member
    2. Manage my membership
    3. Benefits of membership
    4. Professional development
    5. Mentoring
    6. Member rewards
    7. CA jobs
    8. Area networks
    9. International communities
    10. Get involved
    11. CA Connect
    12. CA magazine
    13. Top Young CAs
    14. Career breaks
    15. The ICAS member app
    16. Newly admitted members 2020
    17. CA Wellbeing
  2. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
  3. CA Students
    1. Studying with ICAS
    2. Timetables and exams
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
  4. Employers
    1. Become an Authorised Training Office (ATO)
    2. Resources for Authorised Training Offices (ATO)
    3. Professional entry
    4. Apprenticeships
  5. Thought leadership
    1. Technology
    2. Trust
    3. Talent
    4. Research
    5. CA Agenda podcast
    6. CA Agenda videos
    7. ICAS webinars
  6. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Charities
    5. Coronavirus
    6. Corporate and financial reporting
    7. Business and governance
    8. Ethics
    9. Insolvency
    10. Pensions
    11. Practice
    12. Public sector
    13. Sustainability
    14. Tax
  7. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  8. Governance
    1. At a glance
    2. Charter, rules and regulations
    3. Council
    4. Boards and key committees
    5. Public reporting
    6. Executive team
    7. Diversity
    8. Member research
  9. Contact us
    1. ICAS technical helpdesk
    2. ICAS logo request
  10. Careers
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS

Changing times – changes to reporting times for property disposals

  • LinkedIn (opens new window)
  • Twitter (opens new window)
By Helen Thornley, ATT Technical Officer

22 July 2019

Main points:

  • From April 2020, strict time limits will apply to some UK residents disposing of UK residential property.

  • Payments on account of Capital Gains Tax on such property will be required in-year.

  • Reporting requirements for non-residents were extended in April 2019.

Helen Thornley, ATT Technical Officer, outlines some of the key changes to reporting requirements included within Finance Act 2019 which will affect both UK resident and non-UK resident individuals disposing of UK property.

A major change to the timing of Capital Gains Tax (CGT) payments for UK residents takes effect from 6 April 2020. Individuals disposing of residential property where a tax charge arises – most likely landlords and second home owners – will need to report the disposal and pay the CGT within 30 days of completion. Currently only non-residents are required to carry out such in-year reporting, and the obligations here have recently been extended to non-residential properties.

In-year returns for UK residents

The new provisions, which are included in Part 1 of TCGA 1992, require UK resident individuals disposing of a UK residential property from 6 April 2020 to calculate and report the tax due within 30 days of the completion of the transaction. A payment on account equal to the calculated tax bill must also be paid within the same window.

Where appropriate, reasonable estimates and apportionments can be made, which is likely to include an estimate of the applicable tax rates and could include taking a view on the individual’s likely residence for the year. There are also special rules when estimating the tax due for when losses on other property disposals and other assets can be taken into account. There are then limited provisions for amending the return in-year, with any final adjustments which are required likely to made through the usual self-assessment process.

Exemptions

Fortunately reporting will not be required when no payment on account is required – for example if private residence relief is available in full, the gain is under the annual exemption or one of the no-gain/no-loss provisions such as a transfer between spouses applies. Neither is a report required where the individual realises a loss, although they might choose to report if it would allow them to reclaim some or all of a payment on account made in respect of a residential disposal earlier in the same tax year.

Wider impacts

The new reporting requirements are being introduced at the same time as we are expecting changes to letting relief and private residence relief. These changes will both increase the number of people likely to pay CGT on a residential property disposal, and the amount of tax due.

The key requirement now is to ensure that clients are aware of the forthcoming changes and are prepared for both the significantly reduced reporting window and the cash flow consequences of the payment on account.

Non-residents – April 2019 changes

Non-resident individuals have been required to report disposals of residential property within 30 days since April 2015. From April 2019, this requirement has been extended to disposals by a non-resident of any UK land and now includes, for example, commercial property and farm land. Non-residents who hold UK property via companies or other structures must also now report indirect disposals of holdings in ‘property rich’ entities.

Finally, the option which some non-residents had to pay any tax along with the rest of their self-assessment tax bill was removed from April 2019. Non-residents must now both report and pay within 30 days even if they are already in self-assessment.

Helen Thornley will be presenting the session ‘Taxation of Property’ which forms part of the one day ICAS flagship course ‘Current Tax’. For details of the other sessions and booking details please view the course info below.

View Course

2021-01-markel 2021-01-markel
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba
ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: