Anyone selling a UK residential property usually needs to report the disposal to HMRC within 60 days of completion. The requirement applies even where the individual is not normally required to report Capital Gains Tax (CGT) through a tax return.
Any CGT due must normally be paid within the same 60-day period. Payment can be made online or by other methods accepted by HMRC, and taxpayers should allow sufficient time for the payment to reach HMRC by the deadline. Where the amount of tax due changes after the property disposal has been reported, the taxpayer may need to update the return and pay any additional amount due. Interest and penalties may apply where a gain is not reported and paid on time.
The gain must be calculated taking into account the costs associated with acquiring and disposing of the property as well as any qualifying improvement costs and any reliefs or exemptions that may apply. Private Residence Relief may be available where the property was the individual's main home.
Importantly, reporting and paying the tax through HMRC's online service does not remove the need to include the disposal on the annual self-assessment tax return where the individual is already registered for self-assessment.
Non-UK residents have wider reporting obligations and must report all disposals of UK property or land, including where no CGT is due.
