Capital Gains Tax Penalties

Since the introduction of the 30 day tax window for capital gains payment (CGT) in April 2020, HMRC have issued penalties totalling £1.3million in the last 6 months of 2020. 

In summary, landlords and second-home owners will need to declare and pay any capital gains tax on properties within 30 days of completion. 

Those facing fines can appeal against these penalties with HMRC considering whether there is a ‘reasonable excuse’ on a case by case basis. HMRC will also consider COVID-19 as a reasonable excuse for missing tax obligations or filing deadlines.

If this will apply to you or if you are thinking of selling a second property, please contact us at Wettone Matthews to discuss the reporting requirements and to ensure you avoid being the victim of such penalties.