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  They have announced that they will no longer charge the £10 daily penalties and that past penalties will be withdrawn.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
 
Ian Piper
23rd May 2018 EMI Share Options: EU waives opportunity to ‘be difficult’.

Tech companies that have a business plan of developing a new product, with the aim of an eventual trade sale or IPO exit, will be very familiar with EMI share options. These options give generous personal tax breaks, to help recruit, retain and reward middle management and key workers. Under generic EU principles, such tax…

Read More »

Scott Bishop
23rd May 2018 Trading allowance – income tax simplification?

On 6th April 2017 the Government introduced the trading allowance. The aim of this new allowance is to simplify income tax obligations for minor amounts of trading and miscellaneous income.  In essence, if trading and miscellaneous income is less than £1,000 in a tax year:-  The income is exempt from income tax There is no…

Read More »

Richard Alecock
11th May 2018 Bury St. Edmunds and Mildenhall clients attend the last in our MTD Seminar series

Thursday evening saw the last in our successful series of MTD seminars, held at Memorial Hall in Newmarket, where we had another great turnout. We explained to our clients and guests the implication of  MTD that launches for VAT registered businesses over the VAT threshold starting in April 2019 and how those changes would directly…

Read More »

Rebecca Marley
9th May 2018 iZettle – Taking payments has never been so easy

iZettle was founded in Stockholm in 2010 and have attempted to revolutionise mobile payments with the first mini chip card reader and software for mobile devices. Their commerce platform for small businesses in Europe and Latin America provides tools to get paid, sell smarter and grow your business. Some of the huge benefits are: Automatically…

Read More »

Donna Gidney
9th May 2018 Latest MTD seminar held at our March office

The latest of our series of MTD seminars was held at the March office last night. This was well attended and gave clients an overview of MTD and what it means for them. The presentation was followed by a Xero demonstration, which highlighted the benefits of moving to a cloud based package over and above…

Read More »

Amanda Newman
3rd May 2018 MTD delayed further is not the case

HMRC have recently issued further information regarding MTD , stating prioritising EU exit work is delaying plans to introduce further digital services for individuals. This however ONLY affects simple assessment and real time tax code changes, HMRC are still striving to encourage further uptake of personal tax accounts. Simple assessment was intended to take two…

Read More »