Capital gains tax on property – pay and file within 30 days

Where a residential property is sold and both the exchange and completion dates fall on or after 06 April 2020, the vendor, or their agent, must file an online return of any taxable gain arising and pay the capital gains tax due, both within 30 days of the completion date.

Before 06 April 2020 individuals were required to report gains arising from all assets, including residential property, on their self-assessment tax return with any tax due being payable by the usual 31 January deadline.

The new rules mean that individuals who dispose of residential property in the UK need to file the online ‘CGT on UK property return’ and pay the tax within the 30 day deadline.

There are automatic penalties for late filing of the returns.

Accountants are able to file the returns on behalf of clients and will need to provide assistance with the calculations to estimate the tax that may be due.

With the stamp duty holiday still available, many private landlords are taking advantage of this to dispose of properties before the 31 March deadline (unless it is extended in the upcoming Budget) and so need to be aware of the new rules.

If you are a landlord or any individual in the process of selling or have recently sold a property get in touch to see how we can help you. The first meeting is always free.

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