AAT is calling on the new reporting requirements for Capital Gains Tax (CGT) on residential properties to be doubled from 30 to 60 days.
The changes, which came into effect in April 2020, require anyone with reportable gain on UK residential property to report and pay any tax using a Capital gains Tax on Property account within just 30 days of selling it.
Previously, gains could be reported in a self-assessment tax return in the tax year after the property was sold.
For accountants to undertake this work on their client’s behalf, they need specific authorisation from their client, which must be gained using an agent services account and emailing authorisation links to clients for them to create a Government Gateway account.
As a result of these changes, many AAT licensed accountants have expressed their concerns about both the incredibly tight timeframe for reporting any CGT liability and a widespread lack of awareness amongst those selling residential property. AAT members have also reported issues accessing the Government Gateway.
Phil Hall, AAT Head of Public Affairs and Public Policy, said: “Since this change came into effect last year, AAT has repeatedly highlighted its members’ concerns, particularly AAT Licensed accountants, with the unreasonable nature of this new 30-day reporting requirement. Although we’re working with HMRC and other professional bodies to improve guidance in this area, we remain convinced that the most effective solution would be to double the reporting period from 30 to 60 days.”