NB Updated October 2021 – UK Property Return due within 60 days of completion (30 days prior to 27 October 2021) where a tax liability arises – see more
In April 2020, the rules for reporting capital gains on UK residential property sales changed. From that date, gains are to be reported within 30 days of the sale completion. The resulting capital gains tax (CGT) is also payable within 30 days. This was a significant change from the old regime and provides only a short amount of time in which to file a return and pay the tax due.
If a taxable gain is made on a UK residential property, the details must be reported on a UK Property Account. This account is set up via the UK Government Gateway. In most cases, individuals will also need to report the gain on a self-assessment Tax Return. This will need to be filed by the following January after the tax year end.
The position for non-UK residents is similar. However, those individuals must report gains on all UK property sales (not just residential) within 30 days. In addition, the gain must be reported for a non-UK resident irrespective of whether a tax liability arises.
It is important to bear this reporting requirement in mind as there can be significant penalties for non-compliance.
We have advised many clients over the last year on UK property gains and have assisted them with their reporting requirements. If you would like our help in calculating your capital gains tax position and filing a UK Property Return, then please get in touch via the ‘contact us’ form or call one of our offices.