If you sell a UK residential property subject to capital gains tax (CGT), you must report the gain and pay the tax within 30 days of the completion date of the deal.
The report generally has to be done online through a UK property account which needs to be activated for that purpose. The reporting must be repeated in your self-assessment tax return after the end of the tax year. We can help you with CGT reporting.
Property investors who live outside the UK must report within 30 days gains from all types of UK property – commercial and residential – held directly or indirectly. However, getting through HMRC’s security systems to set up the online property account can be very difficult and sometimes impossible.
HMRC has listened to complaints and has extended the period for reporting and paying CGT on relevant property disposals from 30 to 60 days for deals completed on and after 27 October 2021. Property deals completed before that date still need to be reported within 30 days if tax is payable.
Where gains are made by UK residents from mixed-use properties – commercial and residential – for example a shop with a flat above, only the residential part of the gain should be reported on the UK property account.
If you need help with this or any other accountancy, tax and small business issues, get in touch for a no-obligation discussion – see our Contact Us page for how to reach us.
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