From this month, HMRC has enacted legislation requiring UK residents to submit capital gains tax (CGT) returns, as well as pay any CGT due within 30 days of completion of the sale of residential property.
Previously, individuals under self-assessment could instead report the sale and pay across their liability through their tax return.
It is crucial for sellers to be aware of the vastly reduced time limits quicker turnaround, as failure to comply will result in charges, potentially leaving them out of pocket.
Hilesh Chavda, a legal tax specialist in Royds Withy King’s Private Wealth team, said: “Where CGT is due, the change could mean that sellers have to get funds in place to cover the CGT liability before the sale is completed as 30 days is not very long at all. This could be a particular issue where there are large historic gains.”