If you sell a residential property in the UK after 6 April 2020 and have capital gains tax (CGT) due, you must report the gain and pay the CGT within 30 calendar days of selling the property. Failing to report and pay, you will be subject to late filing and payment penalty plus interest. Before 6 April 2020, you could report the CGT in your annual self-assessment tax return by 31 January after the tax year within that you sold the property.
When you must report
- You sell a residential property that has CGT due. You could be:
- UK resident
- Non-UK resident
- Landlord throughout the ownership period
- Landlord part of the ownership period
- Non-UK resident and sell a property in the UK that has no CGT due
When you do not have to report
- You sell your main residence. You can claim Private Residence Relief
- You sell a rental property but the capital gain is less than the annual capital gains allowance
- You sell a property abroad and make capital gains. You can report it in your self-assessment tax return
- You sell a property at a loss
How to report
You can report it online via HMRC service portal. You will need a government gateway ID, in order to do that. Access the service Here
Alternatively, you can find an accountant to report it on your behalf.
Self-Assessment tax return
If you have reported the CGT within 30 days of selling the property and paid the tax, you still need to include the taxable gain and tax paid in your Self-Assessment tax return as a reference line, no new tax liability will be generated.