Overview
From 6 April 2020, UK residents selling residential properties in the UK will have 30 days, from the date of completion, to tell HMRC and pay any Capital Gains Tax (CGT) owed.
Online reporting
HMRC’s ‘real time’ online reporting service can be accessed at the following address.
https://www.tax.service.gov.uk/forms/form/capital-gains-tax-real-time-transaction-return/new
HMRC will be launching a new reporting service shortly, replacing the existing facility.
Interaction with Self Assessment
Self Assessment returns must include all CGT disposals in the normal way, including those reported under the 30-day reporting rules.
If a disposal is included in a full Self Assessment return before the end of the 30 day reporting period, it is not necessary also to make a separate online report for the disposal. This is likely to be relatively rare, but could apply, for example, where completion is delayed following exchange of contracts.
For those not currently within Self Assessment, a reportable disposal does not create a need to register provided that the full CGT is reported and paid via the property return, and the return is filed by 5 October following the end of the tax year.
Exceptions
Reporting is not required where one of the following applies:
- A legally binding contract for the sale was made before 6 April 2020
- The criteria for full Private Residence Relief are met
- The disposal is to a spouse or civil partner
- Any gains, together with any other chargeable residential property gains in the same tax year, are within your tax-free Annual Exempt Amount
- The disposal was made for a loss
- The property is outside the UK
Amendments
Amendment of a CGT report can only be made in specific circumstances, and only in respect of events that had already occurred at the date the return was originally made.
Amendment is not possible once the Self Assessment return has been submitted (or becomes overdue). For those outside of Self Assessment, the time limit for amendment is one year from 31 January following the tax year of the disposal.
Non-UK residents
Non-UK residents must continue to report disposals of interests in UK property or land within 30 days of completion, regardless of whether there is a CGT liability.
Deferral of the payment of any CGT owed via the Self-Assessment return, will no longer be possible. The CGT must be paid within the 30-day reporting and payment period.
Trusts
The new reporting rules apply to trustees of trusts in the same way as for UK resident individuals.
Agents
Agents registered with HMRC’s Agent Service are able to report gains for their clients. The Agent Service will allow previous submissions to be viewed and amended if necessary.