The deadline for UK residents to report and pay Capital Gains Tax (CGT) will be doubled, the Government has announced.

The measure comes after the time limit for paying tax after disposing of residential land and property in the UK was reduced to just 30 days.

But following recommendations made by the Office for Tax Simplification (OTS) in May, the deadline has now been increased to 60 days with immediate effect for all completions made on or after 27 October 2021.

The Government said the move will give taxpayers more time to “produce and provide” accurate figures, as well as “sufficient time to engage with advisers”.

For non-UK residents disposing of any type of property in the UK, whether directly or indirectly owned, the deadline will also double from 30 days to 60 days.

In related news, the Government will also seek to publish new legislation relating to the disposal of “mixed-use” properties in Finance Bill 2021-22.

The proposed clauses will clarify that, where a gain arises in relation to a mixed-use property, only the portion of the gain that is the residential property gain is to be reported and paid.

The full breakdown of the changes can be found here.

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