UK and International Tax news

Reporting And Payment Of CGT On Residential Property Disposals

Wednesday 8th April 2020

HMRC has launched a new online service to enable sellers of UK residential properties on or after 6 April 2020 to report and pay any capital gains tax due within 30 days of completion.

From 6 April 2020, sellers of UK residential property must report and pay any CGT due within 30 days of completion.  The new obligation applies to UK residential property transactions where the date of disposal (usually the date of exchange) is on or after 6 April 2020 and CGT is due.

UK residents do not need to report transactions where no tax is due because of the availability of reliefs such as private residence relief or the annual exempt amount. A non-resident person must use the service to report sales or disposals from 6 April 2020 of residential UK property even if there is no tax to pay or a loss has arisen on the disposal.

Taxpayers will need to create an HMRC Capital Gains Tax on UK property account before they can report and pay the tax using the new service, with a Government Gateway user ID and password, and disclose the following information:

  • Property address and postcode
  • Date and cost/value of the property on purchase
  • Date of exchange of contracts on sale
  • Completion date of sale
  • Value of the property of sold/disposal
  • Costs of buying, selling or making improvements to the property
  • Details of any tax reliefs, allowances or exemptions to be claimed
  • Property type, if the seller is non-resident

Agents may also sign up to the new service, which will require the client to set up an online CGT account and to authorise the agent online, even if authority for other services is in place.

 

If you would like more information on the above, please contact Keith Rushen on 0207 486 2378

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