30 Day CGT Rules

30 days to report and pay CGT on residential property

HMRC have introduced new rules on the reporting of Capital Gains Tax (CGT) on disposals of UK residential property which came into effect from 6 April 2020.

The new rules require both The UK and non-UK residents to report disposals and pay any tax within 30 calendar days from the date of disposal.  While the method of reporting differs a little for residents and non-residents, both must be reported and any tax paid within 30 days.

The new service requires individuals to register their own Government Gateway account and set up a ‘Capital Gains Tax on the UK Property Service’ online account.  The gains can then be reported either by yourself or by your accountant through the online service.

Only where there is no tax liability either through a loss or through Principal Private Residence relief will the disposal not need to be reported through the online service.  It may still need to be declared on your self-assessment tax return especially if there is a loss to carry forward to future years.

Disposals of assets that are not residential UK property such as shares, commercial property or foreign assets are still reported in the same way through the self-assessment tax return.

If you are considering selling UK residential property it is beneficial to do the CGT calculations in advance so that you have advance warning of the likely CGT due and to allow a quick turnaround for the reporting. If you require advice relating to property disposal or would like assistance with reporting, please get in touch with Edward Marriage.