UK residents who sell a residential property in the UK at a gain will begin to be subject to a £100 fine if they do not report disposals within a thirty-day period, say leading tax and advisory firm Blick Rothenberg
Robert Pullen, a partner at the firm said: “Rules that were introduced from 6 April 2020 requiring UK resident individuals to report disposals of UK residential property within 30 days were extended due to the coronavirus, but this comes to an end on July 31st and any late filings after Friday will incur a £100 penalty.
He added: “Whilst the initial extension was welcome, it is unfortunate HMRC do not recognise that people’s lives are still very much disrupted. Reintroducing the £100 penalty for the short 30-day filing deadline seems very harsh given the circumstances.
“it would have been fairer to provide a further extension to the deadline, until later this year, when hopefully more offices are open, and people begin to get back to something closer to normal.”
Pullen said: “In addition to the short 30-day time frame, HMRC continue to be grappling with a whole new administrative system, which is not 100% functioning and still has teething issues. In particular, executors of a deceased estate cannot yet use the new online service and have to report the disposal on paper.
Pullen added “On the one hand the Government are trying to kick-start the property market with the SDLT holiday payment launched, it does not seem right that with the other hand they are tightening the reporting time limits.”