A probe by the Financial Times has found that some 26,500 individuals missed the Capital Gains Tax filing deadline in 2021-22 – slightly up on the previous year, despite an extension to the reporting deadline.
In April 2020 landlords and second home owners liable for CGT on the sale profits of their properties had to pay and declare their taxable gains within 30 days of the sale – far less than under the previous regime, which offered a maximum of 22 months to settle.
The 30 day deadline for the first year of the reporting system was doubled to 60 days, but despite this a Freedom of Information request by the FT to HMRC has discovered an increased number of landlords and second home owners missing the extended deadline.
Those landlords who file late will be charged interest and may be fined.
Fixed penalties of £100 are awarded for delays of up to six months, with additional £300 penalties or five per cent of any CGT due charged on submissions that are between six and 12 months late.
Submissions over a year overdue will be hit with a further £300 penalty or an additional five per cent of any CGT owed.
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