CKLG BLOG

HMRCs new 30 day UK property disposal on line service is now live!

13.04.2020

Private Client

The housing market is temporarily on hold due to COVID-19 although HMRC are proceeding with their new 30 day Capital Gains Tax (CGT) reporting service, despite requests by professionals to delay.  

Broadly speaking, when you exchange contracts after 5 April 2020 to sell (or gift) a residential property that has not been used solely as your home for your entire period of ownership, you need to report the gain arising if it exceeds tax reliefs and exemptions available.  You are also required to settle the CGT due within 30 days of completion.

The same applies to disposals of second homes, buy-to-let properties and furnished holiday properties owned by individuals and trustees and also disposals by personal representatives. 

This is an entirely new reporting regime and 30 days from completion is not much time to get registered, deal with all the facets of the new reporting system and gather information required to calculate the gain and quantify the CGT payable.  To avoid interest charges, all of this needs to happen, and the CGT paid, within 30 days of completion. 

Whilst HMRC have confirmed they will not charge UK residents late filing penalties for residential property disposals which complete up to 30 June 2020 and are reported by 31 July 2020, this does not apply to non-UK residents disposing of UK residential or commercial property (including land) held directly or indirectly.  Non-UK residents are still required to submit a return and settle the CGT within 30 days of completion to avoid interest and penalties. 

If you are near to securing a sale on the disposal of a residential property, please contact a member of our personal tax team on 01223 810100 for help an assistance with the UK property 30 day reporting service.