2 Mins
Did you know?
If you sell a residential property that is subject to Capital Gains Tax (CGT) in the UK, you have 60 days to report the gain to HMRC and pay the tax.
What property disposals are subject to CGT?
Any sale, gift or transfer of residential property by an individual or a trust can be subject to CGT unless covered by a relief. A transfer between spouses or civil partners is exempt, so there’s no CGT to pay and no need to report it to HMRC.
Is my main home subject to CGT and do I need to report it?
If you sell or transfer your only home that you have lived in for the full period you have owned it, principle private residence relief will apply and there will be no CGT and no need to report.
If you have not lived in the property for the full time, there is more than one main home (married couples and those in a civil partnership can only have one main home between them) or part of the property is used for business or rental, there may be CGT due and you should seek advice.
How much CGT will I pay?
The rate of CGT on residential property is 18% for basic rate taxpayers and 28% for higher or additional rate taxpayers.
How do I report the gain and pay the tax?
The gain is reported to HMRC via an online CGT account, which can be done either by you or your accountant.
What is the penalty if I miss the deadline?
There is an initial £100 penalty, if the 60-day deadline is missed. Further penalties will be issued if the gain remains unreported.
How can Henderson Loggie help?
At Henderson Loggie we have a team of professionally qualified individuals happy to help. We can guide you through the full process, calculate the gain for you and report to HMRC or assist with any part of the process.
If you would like any assistance or to request a quote, please get in touch with our tax team at CGT@hlca.co.uk.
