• Greenline Accountants

HMRC fines for late filing of CGT declarations on disposal of second property, net over £1.3 Million

HMRC has issued late filing penalties totalling £1,311,300 since the introduction of the new 30-day tax window for capital gains payment (CGT) in April 2020


The new law, introduced on 6 April 2020, states that anyone selling a second home must declare and pay any CGT due within a month of completion or face penalties.

These penalties have grossed HMRC over £1.3m in the last six months of 2020.

On on initial inception, HMRC adopted a soft landing, waiving late filing penalties of £100 until end of June 2020, provided the tax was paid by 31st July 2020.

HMRC is currently issuing financial penalties for those filing their CGT late, and will continue to not issue late payment penalties for failing to pay capital gains tax on UK property within 30 days until after 31 January 2022.

Previously landlords and second-home owners declared any owing duties at the end of the year in their annual tax returns, giving them in some cases more than a year before they had to declare and pay. Those facing the fines can appeal against these penalties with HMRC considering whether they have a ‘reasonable excuse’ for not filing on time, on a case by case basis. HMRC will also consider Covid-19 as a reasonable excuse for missing some tax obligations such as payments or filing dates.


We wrote about the changes to CGT on property a while ago, the article can be found here & again would urge anyone considering selling a second property to contact us to understand your CGT obligations. https://www.greenlineaccountants.com/post/buy-to-let-landlords-new-tax-year-means-new-rules