Penalties for late submission of Non Resident Capital Gains Tax (NRCGT) Returns

By Technical Team on 19 Jun 2017

We have been in discussion with HMRC following recent reports of substantial penalties being levied for late submission of NRCGT returns. Our interest in this matter not only concerns HMRC’s approach to these cases, but also the lack of targeted publicity about the measure itself. 

HMRC has now confirmed the following in relation to penalties:

“The penalties for the late filing of an NRCGT return is in line with late filing penalties for other types of return, the amount of penalty applicable depends on the degree to which the return is late:

  • there is an initial penalty of £100 in all cases;
  • plus a further penalty of 5% of the tax due or £300 if greater for returns over 6 months late;
  • plus a further penalty of 5% of the tax due or £300 if greater for returns over 12 months late.

Additionally, HMRC has discretion to charge penalties of £10 per day for returns that are filed between 3 and 6 months late.

These penalties can be appealed if there is a reasonable justification for the return being late.  Further information on this can be found online here: https://www.gov.uk/tax-appeals/reasonable-excuses

Following representations from a number of customers and agents HMRC have reviewed its position with regard to the £10 daily penalties.  I can confirm that we no longer issue these penalties for late NRCGT returns and past penalties will be withdrawn.”

We continue to discuss this with HMRC, and we will provide further information as it becomes available.

Technical Team

Posted in: Technical News