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Capital Gains Tax Deadlines

As from the 6th April 2020, the deadlines for paying Capital Gains Tax (CGT) after selling a property are changing.

If you are a UK resident and sell a residential property in the UK you’ll have 30 days to inform HMRC and pay any CGT owed.

What is Capital Gains Tax?

Capital Gains Tax is the tax on the profit when you sell (or dispose of) something (an asset) that has increased in value.

When would Capital Gains Tax need to be reported within 30 days?

You may need to make a CGT and make a payment when, for example, you sell or otherwise dispose of:

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

It is not necessary to report and make payment when:

  • a legally binding contract for the sale was made before 6 April 2020
  • you meet the criteria for Private Residence Relief
  • the sale was 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

HMRC will launch a new online service for Capital Gains Tax owed to be reported and paid.

What if you’re a non-UK resident?

As a non-UK resident you must continue to report sales/disposals of interests in UK property or land, if there is a CGT liability or not.

Deferred payment of CGT via the self assessment will no longer be possible, tax owed will need to be paid within the 30 days.

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

For further advice on CGT contact AJR & Co Ltd to arrange a free 30 minute consultation.