Report and pay Capital Gains Tax on UK properties within 30 days of sale
Have you sold a UK residential property on or after 6 April 2020? Or you are considering selling a UK residential property?
Prior to 6 April 2020 capital gains on a UK residential property were reported in your self-assessment return for the year the property sold. From 6 April 2020 HMRC introduced a new policy requiring you to report and pay any capital gains within 30 days of the sale.
The revised policy applies to both UK and non-UK residents but does not apply if the property has been used solely as your private residence during the full ownership period.
- This only applies to the disposal of UK residential property
- You have 30 calendar days from the completion date to tell HMRC and pay any capital gains tax (CGT) owed
- Non-UK residents must continue to report sales or disposals of interests in UK property or land regardless of whether there is a CGT liability, within 30 days of completion of the disposal. This includes disposals of residential properties, non-residential properties and indirect disposals
- If you are a UK resident, you do not need to do anything if the gains are not chargeable for CGT.
I have sold a UK residential property, what do I do now?
Firstly, a capital gain calculation must be completed, and your workings saved as a PDF or JPG file so that they can be uploaded to HMRC with your return. Reliefs may be available for UK residential properties and any claims for these will need showing in your workings. Following the completion of your calculation, you must ensure you have an account with the HMRC Capital Gains Tax service. The calculation and submission can be carried out via an agent, should you wish for our team to manage your calculation and report to HMRC on your behalf, please contact us for a quote.
The following information will be required by HMRC;
- property address and postcode
- date you acquired the property
- date contracts were exchanged for the sale or disposal of the property
- date you ceased being the property’s owner (completion date)
- value of the property when you acquired it
- value of the property when you sold or disposed of it
- costs of buying, selling or making improvements to the property
- details of any tax reliefs, allowances or exemptions you’re entitled to claim
- property type if you’re a non-resident
Please note : Due to coronavirus HMRC did not issue late penalties to any transactions completed between 6 April and 30 June 2020, provided the gain was reported and any tax due paid by 31 July 2020. Anyone who completes the sale of a property from 1 July 2020 onwards has 30 calendar days to report and pay the tax due. Transactions completed from 1 July 2020 will receive late filing penalties/interest if reported after the 30 day period.