Non-Resident Capital Gains Tax Returns – penalties eased

30th June 2017

Since April 2015 non-residents selling UK residential property have been required to report the disposals within a Non-resident Capital Gains Tax return within 30 days of the conveyance.  You can view HMRC’s guidance here

The timeframe is very tight – some may think unreasonably so, especially since many individuals are unaware of this requirement until they contact us for advice on their tax position, often long after the 30 day time limit has passed.

Whilst we can act quickly, penalties for late submission inevitably ensue, even where no tax is payable, perhaps due to the availability of reliefs.  And these penalties can be substantial – a fixed penalty of £100 at the very least , plus daily penalties of £10 if the return is more than 3 months late. We have seen a number of hefty penalties notices issued, completely disproportionate to the amount of tax involved.

Following repeated representations from agents, tax-payers and professional bodes, HMRC have finally relaxed their position to some degree.  They have announced that they will no longer charge the £10 daily penalties and that past penalties will be withdrawn.  Whether they will automatically rescind penalty notices previously issued and repay amounts settled is not clear, however.  I suspect that those affected will need to instigate repayments by contacting HMRC.

If you need advice on your UK tax compliance obligations as a non-UK resident, please contact our private client tax department.



 
Other items in Blogs
 
Jason Jones
30th July 2018 Tax Rules on Holiday Homes

So, you enjoyed your break in a holiday cottage to the extent that you’re considering investing to make money from a similar property of your own. Jason Jones has this advice because a Furnished Holiday Let is a special type of property business where very different tax rules apply.   These Lets can be seen…

Read More »

Ben Kilby
23rd July 2018 MTD for VAT – FARMPLAN READY!

As of 18 July 2018, HMRC has issued a list of software suppliers supporting Making Tax Digital for VAT. Amongst the list is Farmplan, the only agricultural software supplier. Farmplan has met the criteria HMRC have stipulated for Beta testing. It shows that Farmplan is committed to providing software that is compatible for MTD for…

Read More »

James Cater
29th June 2018 Understanding Tax Relief Restrictions

Although we hear of decline in the value of development land, particularly for larger developments, growing houses continues to be more attractive to many than growing crops. Onerous Section 102 levies may apply but the tax regime remains gentle. It should not however be assumed that tax reliefs will be available automatically. Legislation imposes qualifying…

Read More »

Vanessa Pearson
28th June 2018 Career Change? Think Contracting.

There are many benefits over employment, writes Whiting & Partners Contract Specialist, Vanessa Pearson   Changing careers can be a challenge but leaving the employment wage treadmill to become a contractor can increase your earnings, saving on tax and national insurance as well as providing more flexible working hours. Contractors are essentially self-employed individuals who…

Read More »

Daniel Coleman
28th June 2018 Making Tax Digital – Moving Your Company Forward

You, like many businesses have been successfully running for years, maintaining your books and records and submitting correct VAT returns, in turn ticking all the necessary boxes and satisfying HMRC. However, the introduction of MTD will mean a ‘shake up’ to your current methods and may require you to adopt software for the first time.…

Read More »

Philip Peters
28th June 2018 Trading Allowances Change

Do you remember when eBay first emerged and become a revolutionary trading platform for buying or selling and, yes, turning a profit? As social-media has expanded, so have trading websites to the extent that there’s hardly a town, village or group that does not have a ‘buy’n sell’ page.   HM Revenue & Customs have…

Read More »