Capital Gains Tax Reporting for residential property – A reminder
For UK property disposals made from 6 April 2020, you now have 30 days after the property’s completion date to report and pay any Capital Gains Tax due on your UK property disposal.
This is a major change from the old system where any gain would be reportable solely on your annual tax return for the year it arises.
So anyone who is UK Resident and has sold a UK Residential property and made a gain on the disposal it is then mandatory to inform HMRC and pay the liability within 30 days after the property’s completion date.
If you don’t have a gain you don’t have to report the transaction to HMRC as there is nothing to report, the gain is calculated after deducting your annual exemption from CGT of £12,300 for the 2020/2021 tax year. Family and ‘first homes’ are fully covered by principle residence relief so any gain on these is still not reportable or taxable.
Due to coronavirus (Covid-19) HMRC will not issue late penalties to any transactions completed between 6 April and 30 June 2020, provided the gain was reported and any tax due paid by 31 July 2020. Anyone who completes the sale of a property with a gain from 1 July 2020 onwards has 30 calendar days to report and pay the tax due.
Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 calendar days.
Interest will be charged if the tax remains unpaid after 30 days for all transactions from 6 April 2020.
Please see the link for more details .Here is the link to the gov website:
If you have made a gain already or are selling a residential property in the UK and suspect you will have a capital gain please do speak with the accountants here at Heslops who will be happy to assist you in calculating the gain and advising you further on how this is reportable.