30 days or else

We have reported earlier this year that from 6 April 2020, residential property sales that are subject to capital gains tax will need to be reported to HMRC within 30 days of the sale. Any CGT due will also need to be paid in this 30 day period.

Property sales affected will include:

  • a property that you’ve not used as your main home
  • a holiday home
  • a property which you have let for people to live in
  • a property that you have inherited and have not used as your main home

Property sales that will not be subject to this 30 day reporting deadline include:

  • a legally binding contract for the sale was made before 6 April 2020
  • you meet the criteria for Private Residence Relief
  • the sale was made to a spouse or civil partner
  • the gains (including any other chargeable residential property gains in the same tax year) are within your tax free allowance (called the Annual Exempt Amount)
  • you sold the property for a loss
  • the property is outside the UK

Accordingly, if you are contemplating a sale after 5 April 2020, please let us know in advance of the sale. In this way we can gather together all the information required to calculate any capital gain and ensure that returns are made in good time.

There are penalties for late disclosure.

Disposals by non-resident owners

If you are a non-UK resident you must continue to report sales or disposals of interests in UK property or land, regardless of whether there is a Capital Gains Tax liability, within 30 days of completion of the disposal.

You will no longer be able to defer payment of Capital Gains Tax via your Self-Assessment return, and any tax owed must be paid within the 30-day reporting and payment period.

This includes disposals of residential properties, non-residential properties and indirect disposals.

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