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Need help filing your Capital Gains Tax Return?

4 April 2022
Jan Friend
Property Owners

From 6 April 2020 disposals of residential property by UK taxpayers that give rise to a UK tax liability need to be reported to HMRC on a special capital gains tax (CGT) return. Usually this will be dealt with through an electronic submission but in some circumstances a paper form can be used.

When the rules first came out the return had to be made within 30 days of completion of sale. For disposals completed from 27 October 2021 onwards the time limit has been extended to 60 days from completion. However failure to meet the deadline could result in penalties being charged, and you will definitely be charged interest on late paid tax if you miss the 60 day deadline.

We are aware that HMRC will start to send out letters from the end of March 2022 to individuals who disposed of UK residential property in early 2021/22 but who have not filed a return for CGT. If you receive one of these letters it does not necessarily mean you have tax to pay, but it will urge you to consider whether you do need to file a late return and pay over some tax.

The types of disposals that give rise to CGT liabilities are usually:

  • the sale of a second home,
  • the sale of a property that was your main home for only part of ownership,
  • the sale of investment properties,
  • gifts of property,
  • transfers of property to a limited company.

Residential property disposals by trustees and personal representatives dealing with the estate of a deceased individual are also subject to the 60 day rules, however companies are not and continue to declare residential property gains on their CT600 company tax returns. Disposals of commercial property do not fall within the 60 day rules and should be included on the self assessment tax return, with tax due on 31 January after the year of disposal.

Non UK residents need to report disposals of all property (residential or non-residential) within 60 days of completion and pay the CGT in the same time frame.

If you are uncertain whether you have any CGT to pay on a property disposal or want help with a 60 day CGT return contact Jan Friend. We will make sure that you claim all the available reliefs and exemptions so that you pay the minimum tax required by law.

The content in this blog is correct as at 30 March 2022 See terms and conditions.

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