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Markel Tax

03 Jun 2020

30-day reporting and payment rule still apply?

My client has exchanged contracts on the sale of their second home before 5 April 2020, but completion has been now delayed until after 6 April 2020. Does the 30-day reporting and payment rule still apply?

To avoid confusion on cases like the above HMRC have announced that the new rules, which require disposals of UK residential properties to be reported and payments made within 30 days, will only apply to the taxable gains accruing on disposals made on or after 6 April 2020 (tax year 2020/21).

Where contracts exchanged on 5 April 2020 or earlier are unconditional, but completion takes place on or after 6 April 2020, the 30-day requirements would not apply. As previously required, the client should report the gain arising on their 2019/20 self-assessment return.

If, however, the contract exchanged in 2019/20 is conditional and completion takes place in 2020/21 then the client will fall into the new rules and is required to file an online return to HMRC along with a payment on account within 30 days of completion of the sale.

For further information and advice contact Raveen Somrah, one of our consultants at Markel Tax or call our TaxDesk on 0845 490 0509.

Tagged Property tax & SDLT Property tax & SDLT COVID-19