Deadline for reporting the disposal of a UK residential property

This is a gentle reminder that UK residents (individuals, trustees and personal representatives) disposing of UK residential property resulting in a Capital Gains Tax (CGT) liability have 60 days from completion to deliver a CGT Return to HMRC and pay the arising tax.  This cannot solely be dealt with on the Personal Tax Return and […]

This is a gentle reminder that UK residents (individuals, trustees and personal representatives) disposing of UK residential property resulting in a Capital Gains Tax (CGT) liability have 60 days from completion to deliver a CGT Return to HMRC and pay the arising tax.  This cannot solely be dealt with on the Personal Tax Return and the tax paid in the following January as used to be the case.

In the case of mixed-use property disposed of by a UK resident, the 60-day reporting and payment window only applies to the residential element of the gain.

Non-UK residents are required to report a disposal of a direct or indirect interest in any type of UK land and make a payment, if it gives rise to a CGT liability, within 60 days of completion of the sale.

Some disposals will not be subject to the 60-day reporting and payment deadline. For example, the deadline does not apply where a gain is covered by private residence relief or the CGT annual exemption or when the property is sold at a loss or if the property is situated outside the UK.

If the CGT return filing and payment deadline is missed, HMRC may impose penalties as well as charging interest for late payment of tax.

If you have any queries or would like to discuss this further, please do not hesitate to contact your Kilsby Williams team member on 01633 810081 or info@kilsbywilliams.com.

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