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30-Days to pay CGT for Residential Property

Updated: Apr 10, 2021

Avoid a penalty and being charged interest by HMRC

Capital Gains Tax on Property
Capital Gains Tax on Residential Property

What has Changed?

As the property transactions increase during 2021, all property investors should be aware that if any capital gains tax (CGT) is due, it is required to be reported and paid within 30 days of completion.

Otherwise HMRC will impose interest and a penalty.

This applies to disposals of UK residential properties on or after 6th April 2020. Included within this are buy-to-let properties, business premises, land and also inherited property, holiday homes and even a property that you have never lived in, or only lived in for a part of your ownership period.

The reporting is only required if there is a CGT liability due. Charterwells can help you calculate your gain and the corresponding tax payable. There are various reliefs we can apply such as: private residence relief and the annual exemption amount.

If you are a non UK resident, you may still need to still report the transaction regardless of whether tax is due.

It is vital you contact Charterwells for advice and help for this before you sell your property due to the 30 day window and avoid paying interest and a penalty.

Mitul Pandya from Charterwells explains that "The 30 day reporting is not required if there is no tax payable on the disposal. For instance if the gain is covered by your annual exemption of £12,300 during the tax year 2021/22, if you qualify for the main residence relief or if you are selling at a loss."

Practical Steps

We can assist in creating a new Government Gateway user ID. It is through this account that the Capital Gain Tax Return is completed and submitted to HMRC.

Before contacting Charterwells please keep the following information ready:

  • property address and postcode

  • date you purchased the property

  • date you exchanged contracts when you were selling or disposing of the property

  • date you stopped being the property’s owner (completion date)

  • value of the property when you acquired it

  • value of the property when you sold or disposed of it

  • costs of buying, selling or making improvements to the property

  • details of any tax reliefs, allowances or exemptions you’re entitled to claim

  • property type

  • if you’re a non-resident

Let Charterwells take it from here

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