Currently, capital gains arising on the sale of residential property in the UK must be reported on your annual tax return and submitted in the following tax year, either by 31 October (for paper returns) or 31 January (for electronic returns). In both cases, Capital Gains Tax (CGT) does not need to be paid until 31 January after the end of the tax year in which the gains arose.
However, from 6 April 2020, CGT on residential property not covered by Principal Private Residence relief (PPR) (which broadly covers your main home) must be reported by you online and also paid within just thirty days of completion! This new requirement is very strict and has even resulted in HMRC introducing a new Residential Property Return form for this purpose. Not to mention penalties and interest...
A property which is wholly covered by PPR is exempt from reporting requirements. However, this protection may not apply if, for example, you have owned another home at the same time, or let it out at any point, or not moved in promptly. So take care!
If you are selling residential property in the UK after 5 April 2020 which is not your main residence and need help meeting the new CGT reporting requirements, please contact one of the Tax and Trust team below.
- Eric Wardle on 01604 463110 or click here to email Eric.
- Elaine Morgan on 01604 463120 or click here to email Elaine.
- Alan Taylor on 01223 532740 or click here to email Alan.
- Alexia Simon on 01604 463128 or click here to email Alexia
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.