30 days to report and pay Capital Gains Tax on residential property

Capital Gains Tax (CGT) is something you may have to pay if you make a profit when you sell property that’s not your main home. For example, buy-to-let properties, land or inherited property.

Since 6 April 2020, HMRC has required the reporting and payment of any CGT due within 30 days after the property’s completion date. However, due to Covid-19, HMRC did not issue late penalties for any transactions completed between 6 April and 30 June 2020, provided the gain was reported and any tax due was paid by 31 July 2020.

Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 days. Interest will be charged if the tax remains unpaid after 30 days.

How this might impact on you

As we will not be certain of CGT liability until we have prepared the next Self Assessment tax return to 5 April, we will need to estimate the CGT liability within 30 days of the sale and then account for any over/ under estimation of the CGT once the Self Assessment tax return is prepared.

To report the CGT to HMRC, you will need to have an HMRC Government Gateway Account and apply for a Capital Gains Reporting Account before you can appoint me as your agent, so that I can submit the report to HMRC on your behalf.

This may take a little time, so if you sell a property that is not your main residence, it’s best to let me know as soon as possible.

For more information, please visit www.tax.service.gov.uk/capital-gains-tax-uk-property/start/report-pay-capital-gains-tax-uk-property.