Reporting Capital Gains Tax on the Sale of UK Residential Property

Prior to 6 April 2020, UK residents could report and pay Capital Gains Tax (CGT) on disposals of UK residential property via their annual self assessment tax return in the year the disposal took place. However, from 6 April 2020 HM Revenue & Customs (HMRC) introduced a new reporting requirement which required disposals to be reported separately from self assessment and within 30 days of completion. Since its introduction the reporting deadline has been extended so now any completions on or after 27 October 2021 should be reported within 60 days.

This requirement applies where all of the following exist;

• You are a UK resident;
• You have disposed of UK residential property;
• There is tax due.

The CGT on property disposal (CGT PPD) return is made using the HMRC digital service, see below for further details on how to report.

Non-UK residents

If you are a non-UK resident these changes won’t be unfamiliar as there have been reporting requirements in place since April 2015 for disposals of UK property. The requirement however is much broader in that it requires reporting on:

• residential UK property or land (land for these purposes also includes any buildings on the land);
• non-residential UK property or land;
• mixed use UK property or land; and
• rights to assets that derive at least 75% of their value from UK land (indirect disposals).

The other distinction to the requirements of UK residents is that Non-UK residents must report disposals even where no tax is due.

How to report and pay

HMRC has created a digital service which allows both agents and taxpayers to make CGT PPD returns and view and amend previous returns and payments. If submitting the return yourself you must do so using your Government Gateway ID and password. If you do not have a user ID, you can create one the first time you sign in.

To make the return and pay any liability due, please see the following GOV.UK guidance on ‘Report and pay Capital Gains Tax on UK property’

Self assessment tax returns

Gains reported through the new service must also be reported on the self assessment tax return. However, there is no requirement to file a self-assessment return if not otherwise required and all gains have been reported through the new service.