Reporting Capital Gains Tax on Residential Property

Since April 2020, taxable gains made by individuals on the sale of residential property must be declared on a separate online Capital Gains Tax Return. Previously the deadline for submission and payment was within 30 days of completion, however this has now been extended to 60 days from 27 October 2021.

Despite these changes having come in over 12 months ago, not all taxpayers are aware of this new requirement. In addition, we have found that they are not always reminded of this requirement by professionals assisting with the sale of the property.    

The only exemptions to the reporting requirement are as follows: 

  • The property was your main home for the entire period of ownership and qualifies for Principal Private Residence relief 
  • The disposal was to a spouse or civil partner 
  • The gain plus all other gains during the year are within the tax-free CGT allowance (currently £12,300) 
  • The property was sold at a loss 
  • The property is not in the UK 

There are penalties for late filing which start at £100 if filed within 6 months of the filing date. If a return is over six months late, a further penalty of £300 is added or 5% of any tax due if this is greater. A further £300 will be levied (or 5% tax if greater) where the delay is more than a year. Interest will also be due on the late payment.   

If you are considering selling a property other than your main home, talk to us about whether you need to file this return. Gifts of a property to someone else, or to a trust or company will also fall under the rules. 

We can calculate the taxable position on the sale and advise you how to set up the online Capital Gains Tax Service online account within your personal tax account. We can also advice on how to grant agent access, so that we can file this on your behalf.