Changes to capital gains tax payment for UK property sales
The deadlines for paying Capital Gains Tax after selling a residential property in the UK are changing from 6 April 2020.
Disposal of UK Residential property by a UK Resident
From 6 April 2020, if you’re a UK resident and sell a residential property in the UK you’ll have 30 days to tell HMRC and pay any Capital Gains Tax owed.
If you don’t tell HMRC about any Capital Gains Tax within 30 days of completion, you may be sent a penalty as well as having to pay interest on what you owe – so it’s really important that everyone involved in the sale of a residential property fully understands these changes.
When do you need to report Capital Gains Tax within 30 days
You may need to make a Capital gains Tax report and make a payment when, for example, you sell or otherwise dispose of:
- – a property that you’ve not used as your main home
- – a holiday home
- – a property which you let out for people to live in
- – a property that you’ve inherited and have not used as your main home
But you won’t have to make a report and make a payment when:
- – a legally binding contract for the sale was made before 6 April 2020
- – you meet the criteria for Private Residence Relief
- – the sale was made to a spouse or civil partner
- – the gains (including any other chargeable residential property gains in the same tax year) are within your tax free allowance (called the Annual Exempt Amount)
- – you sold the property for a loss
- – the property is outside the UK
If you need any help or advice in relation to the disposal of property, please contact us on firstname.lastname@example.org