The current rules on Capital Gains Tax mean that you may need to submit a CGT return online and pay any CGT due within 30 days of selling UK property.
Please note this does not apply to selling property that has always been your Principal Private Residence, or to property developers who sell property as part of their trade.
The tight deadline does apply to:
- UK residents who have sold UK residential property since 6 April 2020 – submit and pay within 30 days
- Non-UK residents who have sold any UK property in the 2019/20 tax year – submit within 30 days but payment can be deferred until January 2021
- Non-UK residents who have sold any UK property since 6 April 2020 – submit and pay within 30 days
Submitting a return using the Capital Gains Tax on UK Property Service
If you need to submit a return using the Capital Gains Tax on UK Property Service, we can submit this for you but we will need enough time to get agent authorisation and calculate the estimated CGT due. You may also need to set up a HMRC government gateway account online to do this. So you need to contact us as soon as possible, ideally when you know a sale is proceeding.
Thinking of selling a property in the near future
If you are thinking of selling property in the near future, let us know before completion so that we can advise you about submitting a return and give you an idea of how much CGT you may have to pay and by when. Prior to selling it would be useful for you to find your original purchase documents for the property, original costs to purchase such as agent/solicitor fees, and invoices for any capital expenditure incurred during ownership. We will need this information to calculate the CGT and may not have all the details on our records.
If you have missed the deadline for your return, we can still submit this online. There is a £100 late filing penalty for filing up to 6 months late (and further penalties after this). Late payment penalties and interest may be charged by HMRC, if there was any tax to pay. If you missed the deadline, do get in touch and make sure you can find your sale completion statement and costs of sale paperwork.
The disposal of property will also go on your tax return for that tax year. Here we will calculate the exact CGT that is due (as this depends on your actual total income for that tax year). We then deduct the CGT you have already paid to HMRC and any difference is added to / deducted from your income tax liability.
If you would like further advice or to discuss anything mentioned in the above article please do get in touch.
Tel: 01202 880384 or firstname.lastname@example.org