Don’t forget to report and pay Capital Gains Tax from residential property sales within 30 days!

Since 6 April 2020, any Capital Gains Tax (CGT) due on UK residential property disposals made by UK residents must be reported and paid within 30 days of completion.

The changes to the CGT treatment of UK residential properties primarily affects let properties, second or holiday homes and homes with significant grounds and gardens – none of which benefit from Principal Private Residence (PPR) relief, which prevents the disposal of a person’s main home from incurring a CGT liability.

Whilst there are some exemptions from completing a return, for example where no tax is due, the short deadline gives limited time to retrieve supporting documentation, prepare CGT calculations or obtain valuations if needed.

It is easy to overlook these requirements during the sale of a residential property but this information must be reported to HMRC within this new time frame and any tax charge paid.

Penalties and interest for late filing are no longer linked to the tax return filing deadlines and could start within 30 days of completion –you must act quickly.

The new rules surrounding CGT on property sales are complex and so it is worth seeking advice if you are unsure of how this affects you.

It is important that you contact us as soon as a sale is agreed to allow us sufficient time for the necessary calculations to be prepared.

If you have any queries about the new CGT implications of selling a property, please contact us.

Posted in Property Construction.