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Wisbech accountant on reporting capital gains on UK property disposals

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Here's the fortnightly Barwell's Banter column by Nickie Barwell.

In April 2020, a new requirement was introduced whereby UK residents had to report and pay capital gains tax on UK residential property disposals within 30 days.

The deadline was extended to 60 days for all completions on or after October 27, 2021.

The requirement only applies to taxpayers when capital gains tax is due. If individuals do not report and pay any capital gains tax due within the time limit they maybe charged penalties and interest.

Reporting the gain

There are two ways to report the gain, either through a HMRC Capital Gains Tax on UK Property account online or for digitally excluded individuals (i.e those unable to interact digitally due to age, disability, remoteness of location or any other reason), a paper form can be requested from HMRC.

A blank copy of the paper form cannot be obtained from HMRC as the form comes partly pre-populated, so individuals wanting a paper form must call HMRC and request one.

For those wishing to use the online account, the individual would need to set up a CGT UK property account regardless of whether they are reporting the gain themselves or whether they are appointing an agent to undertake it.

In order to set up the account the individual would need a Government Gateway user ID and password. If they do not have one, they would need to create one.

The functionality to amend reports has also been introduced.

Information needed to report the gain:

  • Property address;
  • Date you got the property;
  • Exchange date and completion date of property sale;
  • Value of the property when you got it;
  • Value of the property when you disposed of it;
  • Costs of buying, selling or making improvements to the property;
  • Details of any tax reliefs or allowances you’re entitled to claim.

Making payment

With the digital service, once you have filed the return you and your agent (if applicable) will be given a confirmation email. With the paper forms, you will need to send these once completed to HMRC with accompanying calculations and they will then write to you to confirm they have received it and processed it, providing you with details of how to pay and a reference.

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