Capital Gain Tax on property disposals to be paid within 60 day window


CGT on property disposals to be paid earlier.

From April 2020, UK residents disposing of second properties are required to report the sale and pay any resulting tax within 60 days of completion (previously 30 days).

The rules do not apply to main residences which are covered by the Principal Private Residence Relief, sheltering the full gain from tax.

For non-UK residents, new rules also apply from April 2020. Disposals of UK residential and non-residential property must be reported within 60 days of sale completion and any resulting tax paid within the same 60 day period (tax can no longer be deferred until the self-assessment tax return date).

The one exception to the requirement to file a CGT return is where the Self Assessment return is filed within 60 days (or 30 days as applicable) of the transaction completing. In this situation a separate CGT return is not required.

You can use HMRC’s online service for reporting and paying tax on property disposals. Any taxpayers already within the self-assessment system should report property disposals (not covered by PPR) on their tax return, in addition to reporting & paying within the 60 day deadline.

If the disposal is a one off, customers can remain outside the self-assessment system providing there is no other reason to be part of it, such as another source of income subject to UK tax.

For non residential property gains you can use HMRC ‘real time’ Capital Gains Tax Service to report any gains.

We can advise you on your tax obligations, assist with any queries or issues you have and offer solutions to help you achieve a more tax optimal position.

For help and advice, please contact [email protected] or call 01527 558539. Our full service offering is available to help you achieve tax compliance and a tax optimal situation.