The deadlines for filing and paying Capital Gains Tax (CGT) arising on the disposal of an interest in a UK property changed on 6 April 2020 ( amended on 27 October 2021). These changes apply to both UK residents and non-UK residents. These changes don’t apply if the residential property has been used solely as the owner’s private residence during the time it was owned.
If you live in the UK
The changes for UK residents only apply to disposals of UK residential property.
From 27 October 2021, a UK resident disposing of residential property in the UK making a gain that is liable to CGT will have 60 calendar days from the date of completion ( providing completion was on or after 27 October 2021) to tell HMRC and pay any CGT owed. For completion dates before 27 October 2021 the deadline is still 30 days.
This doesn’t apply if the residential property is the person’s home and it’s been used solely as their private residence during the time it was owned. This is because the disposal will be covered by Private Residence Relief.
What if I do not live in the UK?
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 60 days of completion of the disposal.
This includes disposals of residential properties, non-residential properties and indirect disposals.
From 6 April 2020, there is no longer an option to defer payment of CGT via a Self- Assessment return, and any tax owed must be paid within the 30-day reporting and payment period.
How do I tell HMRC about my sale of a property?
First, you need to register for a personal tax government gateway. If you do not have one you can register here https://www.gov.uk/personal-tax-account
Once registered you can use these details to register your Capital Gains Tax on UK Property here
What information do I need to tell HMRC about my property sale?
- address and postcode of the property
- date you got the property
- date you exchanged contracts when selling or disposing of the property
- date you stopped being the property’s owner (completion date)
- value of property when you got it
- value of property when you disposed of it
- costs of buying, selling or making improvements to the property
- the period that you lived in the property, if relevant, with exact dates
- the property value on 31 March 1982 if you owned it at this date
How and when do I pay the Capital Gains on my property sale?
The tax is due within 60 days after the completion of the sale of the property. You can pay by bank transfer, debit card or corporate credit card. You can pay through your Government Gateway using the payment reference number that appears on the confirmation page after you’ve sent the return.
How much tax will I pay on the sale of my property?
The rate of Capital Gains Tax on the sale of residential property will be either 18% or 28% depending on your other income on the same tax year. A tax year is 6 April – 5th April. There may be advice we can give to reduce what tax you pay, so speak to us as early as possible. Book a phone call with an accountant now to get things started.
Need Help with your CGT calculation and submission?
We have a Specialist Tax Department that can take care of all of this for you. We can take the worry away and complete your tax calculation, submit it to HMRC and tell you what to pay. We can ensure you are claiming the maximum reliefs and paying as little as possible. Contact our office for more help or book a phone call or video meeting with an accountant.
Online CGT Service
We also have an Online Capital Gains Tax Service to make it easy for you. We can gather everything we need from you digitally to make the process as quick and easy as possible. Follow the link to start the process.