29 July 2020

Capital Gains Tax – Residential Property Sales

Capital Gains Tax

From 6 April 2020, if you have sold your UK property, you must now report and pay Capital Gains Tax (CGT) within 30 days of the completion date of the sale of the property. The new legislation applies to UK residential property transactions where:

  • The date of disposal is on or after 6 April 2020 and
  • Capital Gains Tax is due – UK residents do not need to report transactions where no tax is due

To report the gain, you will need to report this to HMRC using the ‘real time’ Capital Gains Tax service. You will need a Government Gateway account to report the gain and you will need to upload PDF or JPG files showing how your capital gains and tax were calculated.  If we are your acting agent, we are also able to submit the claim for you, through our agent account.

HMRC confirmed they will not charge late filing penalties for reports of CGT on disposals on or after 6 April 2020 to 30 June 2020, if they were not filed in the 30 day period. HMRC have given an extension, for all submissions to be reports up to 31 July 2020.

Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days. Interest will accrue if the tax remains unpaid after 30 days.

Whether you are a current client or not and have sold a property since 6 April 2020, please get in contact with us to ensure your gain is reported on time. For further information please click here or alternatively contact us, we would be more than happy to help.

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