Taxation of Chargeable Gains Act 1992 section 7

Time for payment of tax

Section 7 establishes when capital gains tax must be paid, including a special earlier payment deadline for gains arising from the disposal of UK residential property.

• Capital gains tax is generally due on 31 January following the end of the tax year in which the gain arises, in line with the normal self-assessment payment date.
• However, gains on disposals of UK residential property are subject to an accelerated payment requirement, with tax due within 60 days of completion of the disposal.
• This earlier payment deadline applies to disposals of residential property situated in the United Kingdom, ensuring that tax on such transactions is collected more promptly than for other types of chargeable gains.
• The provisions were introduced by Schedule 1 paragraph 2 of the Finance Act 2019, reflecting the government's policy of bringing forward the payment date for capital gains on UK residential property disposals.