Lee Sharpe looks at the new requirement to notify and pay in advance of the traditional tax return schedule.
This article covers aspects of the relatively new regime that requires the owner of UK land to make prompt returns and payment on account of their capital gains tax (CGT) liability, and highlights a quirk of the rules that favours disposals late in the tax year. It focuses primarily on UK tax-residents.
The taxpayer is required to notify HMRC and to make a payment on account of their anticipated CGT rather quickly. Advisers will be all too aware of the difficulty in piecing together a CGT history for a property that may have been owned and enhanced over several decades. But HMRC has never been too concerned about causing problems for anyone – least of all landlords or agents.
The new regime was introduced for disposals on or