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Selling A Property – New rules – UK

New rules mean that UK residents with capital gains tax to pay on the sale of UK residential property must report and pay this to HMRC within 60 days.

The new rules apply to all UK residents who exchange contracts on the sale of UK residential property on where there is some capital gains tax to pay on the disposal.

Here is a list of scenarios that you do not need to make a report –

  1. The date of exchange was before 6 April 2020 (even if the date of completion falls on or after 6 April 2020).
  2. There is no capital gains tax to pay. This will most commonly be the case where you are disposing of a property which has been your main residence throughout the entire period of ownership. Full private residence relief can also apply in other circumstances. Alternatively, there may be no capital gains tax to pay because the chargeable gain does not exceed the annual exemption or there is a capital loss.
  3. The property is not residential.
  4. The property is not in the UK.

If you are not resident in the UK and you dispose of any UK land or property, you are liable to make a report within 60 days. This applies even if there is no capital gains tax to pay.

When do I need to make the report by?

If you are required to make a 60-day report, then the 60-day clock starts from the date of completion, not the date of exchange.

If the 60-day report is not submitted by the deadline, a £100 late-filing penalty will apply. Further penalties will be applicable for a continued delay.

Do I need to report the disposal on a Self-Assessment tax return if I have already made a 30/60-day report?

Only if you need to complete a Self-Assessment tax return some other reason. If there is no other reason that you would need to complete a Self-Assessment tax return, you are not obliged to register for Self-Assessment to report the disposal if you have already made a 60-day report.

How do I make the 60-day report?

You should create a Capital Gains Tax on UK property account under a Government Gateway user ID. HMRC are expecting taxpayers to use the digital service by default.

Here is the link to create an account