Have you disposed of UK land and property recently?

12.05.2022

Private Client

Have you disposed of UK land and property recently? 

When you dispose of a UK residential property and realise a capital gain, you will need to report this to HMRC and pay the Capital Gains Tax (CGT) due within 60 days of completion. These rules will affect you as an individual, trustee, or personal representative if you dispose of UK property by way of sale, gift, or transfer to someone who is not your spouse or civil partner.  Typically, this includes the disposal of a property that has not been used solely as your home for your entire period of ownership, second homes, buy-to-let properties, and furnished holiday properties.

Non-UK residents disposing of UK residential or commercial land and property, held directly or indirectly, are also required to submit a return, whether CGT is payable or not.     

The filing deadline for a CGT Property Return is 60 days from the completion date and in most cases, the CGT is also payable within this 60-day timeframe.  For disposals prior to 27 October 2021, the filing and tax payment deadline was 30 days from completion. 

Don’t forget that the date contracts are exchanged determines the tax year the disposal falls in whereas the 60-day time period starts from the date the purchase is completed (i.e. the date the cash is received/keys handed over to the new owner).  If the capital gain is not reported and tax not paid within 60 days from completion, late filing interest and penalties will be charged.  

If you are an Individual, Trustee, or Personal Representative/Executor and are disposing of residential property; or you live overseas and are disposing of any land or property, please call Nicola on 01223 810100 – Nicola will help guide you through the information required and outline the reporting processes.   

Nicola Valentine and Aniketa Khushu were recently updating Neil Whiteside, from Cambridge 105 on the latest changes to Capital Gains Tax, you can listen to their podcast here.