15 June 2021

Tax When You Sell a Property

Capital Gains Tax

Have you recently sold a property in the UK? Remember to report and pay your Capital Gains Tax (CGT) within 30 days of the completion date of the sale.

If you have sold a residential property which qualifies for Capital Gains Tax since 6 April 2020, you must report this through a HMRC UK Property Account.

You must still report the disposal even if you have no tax to pay, you are registered for Self-Assessment or you have made a loss.

Information you will need –

You will need the following information to be able to submit a return using this service:

  • Property address and postcode
  • Date you purchased the property and the value at the purchase date.
  • Date you exchanged contracts when you were selling or disposing of the property.
  • The completion date and the value you have sold or disposed of the asset.
  • Costs of buying, selling, or making improvements to the property.

If you would like us to report the gain for you and submit the return as your Agent, please get in touch and we would be more than happy to do this for you.

Tax rates & allowances –

You only have to pay Capital Gains Tax on your overall gains above your tax free allowance, the tax free allowance remains at £12,300 per individual.

If you are a basic rate tax payer, you will pay 18% on UK residential property gains.

If you are a higher rate tax payer, you will pay 28% on UK residential property gains.

Please be advised you do not usually pay capital gains tax when you sell your home if you have one home and you have lived in it as your main home for all the time you have owned it.

Do not hesitate to get in touch with us for more advice either by email or telephone on 01724 848343 .

Back to all news