Capital Gains Tax on Property : UK Disposals

UK residents are required to report and pay capital gains tax on property : UK disposals of residential property within 60 days of completion. This applies to disposals on or after 27 October 2021.

  • Disposals prior to 27 October 2021. The deadline for reporting and paying capital gains tax was 30 days.

Non-UK residents are required to report all UK land and property (not just residential property) disposals within 60 days. Even if there is no tax to pay.

Report & pay capital gains tax

Disposals are reported online via HM Revenue & Customs Report and pay CGT on UK property service.

  • A Capital Gains Tax on UK Property Account must be created under a Government Gateway user ID.

HMRC are expecting the digital service to be used by default. However, it is possible for digitally excluded taxpayers to file a paper form instead.

  • After you’ve reported your gains, HMRC will send you a letter or email giving you a payment reference number and instructions on how to pay.

Interest and a penalty may be payable if you do not report and pay on time.

Capital Gains Tax Support

We at Shaw Austin can help you report your disposals, and calculate the capital gains tax.

For support get in touch as soon as possible. Prompt support will enable us to help you meet the filing deadline and avoid possible late penalties and interest.

The information we generally require for the capital gains tax computations is as follows:

  • Copy of completion statement for the sale of the land/property
  • Details/copy of any legal and professional fees for the sale of the property, e.g. estate agent fees, solicitors fees
  • Copy of completion statement for the purchase of the property
  • Details/copy of any legal and professional fees incurred in the purchase of the property, e.g. solicitors fees, stamp duty, searches etc.
  • Details of any property improvements (not general repairs claimed as rental expenses) which are still in existence at the date of sale
  • If applicable, dates you lived in the property as your main residence
  • Details of any other capital disposals during the tax year to date, if applicable
  • Details of any capital losses brought forward, if applicable
  • Estimate of income for the tax year to establish what rate of capital gains tax will be payable

You usually dispose of an asset when you sell it, but you may also give it away, exchange it for another asset, transfer it to someone else or it may have been destroyed. In all cases records of disposal proceeds including compensation, if applicable, should be kept.

The capital disposal will also need to be reported on a Self Assessment tax return.

Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.

Published March 2022