HMRC has issued a reminder about the new deadlines for paying Capital Gains Tax (CGT) after selling a residential property in the UK.
The rules on CGT only apply a charge on certain types of properties, including:
Most people do not pay or report CGT on the sale of their main home as they benefit from Principal Private Residence Relief.
How soon must CGT be reported?
From 6 April 2020, UK residents selling a property of this type had to notify HMRC about the gain and pay any tax due within 30 days of completion. This was then extended to 60 days for completion dates on or after 27 October 2021.
From March this year, HMRC has been writing to UK taxpayers who disposed of a property in early 2020 to 2021 but have not filed a CGT return.
They are contacting those people who at the time of the property’s disposal, had 30 days to report and pay any CGT due.
Those affected are being asked to consider whether they owe CGT following the disposal and to file a late CGT return if they need to do so.
The letters also ask them to contact HMRC if they do not believe they have CGT to pay or if they have already reported the property disposal.
HMRC’s CGT guidance can be found online and taxpayers can report and pay any tax due via HMRC’s online service.
If you require advice on selling a property, please contact us.