Article source: Marc Da Silva https://propertyindustryeye.com
The National Residential Landlords Association (NRLA), acting on behalf of private landlords, is backing calls for reform to capital gains tax payment rules.
The report, published yesterday by the Office for Tax Simplification (OTS), makes a series of recommendations that it believes will improve the system and the wider housing market.
The OTS calls for the deadline for the payment of capital gains tax to be extended from 30 to 60 days following disposal of a residential property. It says that a round a third those liable to pay CGT on the sale failed to file on time under the existing 30-day rule.
Chris Norris, policy director for the NRLA, said: “Landlords should always ensure they meet all legally required deadlines to pay tax. That said, today’s report from the Office for Tax Simplification demonstrates a woeful lack of communication and consideration by HMRC about what is expected of those liable for the tax. It adds weight to the argument that the seemingly arbitrary, 30-day deadline has created more problems than it solves.
“We would support the OTS in recommending an extension to 60 days to avoid landlords missing a shorter deadline, potentially through no fault of their own.”