CGT 30-day payment loophole
An overlooked exception to the rule means that not everyone needs to report and pay capital gains tax (CGT) on UK residential property within 30 days. What is the story?
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Self-employed taxpayers warned over missing Class 2 NI credits
HMRC is warning some self-employed taxpayers to check their National Insurance (NI) records after an issue affecting Class 2 NI credits came to light. The problem could leave some individuals with gaps in their contribution record, potentially affecting their entitlement to the State Pension and other contributory benefits. What should you do?
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When is pensions advice exempt from tax?
You’re close to retirement age and want some professional advice on topping up your pension and a rough idea of how much you’ll have to live on in retirement. If your company foots the bill, will it qualify for the tax exemption?
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HMRC takes aim at side hustles
People with side hustles are the target of a HMRC press release reminding them of their potential tax obligations. Why has this been published now, and what are the key points to remember?
Anyone disposing of UK residential property that hasa CGT liability must report and pay the tax within 30 days of completion since the changes effective from April 2020. However, for transactions taking place towards the end of the tax year there is an opportunity to delay payment.
The date of exchange is relevant for the tax return reporting, but the 30-day countdown starts when the property transfer completes. This means that where contracts are exchanged during 2020/21, but completion does not take place until 7 March 2021 or later, the 30-day deadline falls after 5 April 2021. It is therefore possible to submit their 2020/21 tax return and, providing this is done before the 30-day deadline, there is no need to report the gain separately or pay the tax within 30 days.
The tax payment deadline will then be deferred until 31 January 2022, and it will save the time, cost, and hassle of reporting it within HMRC’s Capital Gains Tax on UK property account. It also allows the individual to adjust their July payments on account.
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