Reporting Period for Capital Gains Tax

There is a Capital Gains Tax (CGT) charge when an individual sells a residential property in the UK. This tax is supposed to be paid with 30 days of the completion date.

There is a recent change in the legislation on reporting and payment date.

In the Autumn Budget, the Chancellor announced that the deadline for making CGT returns and associated payments on account would be changed from 30 days after completion to 60 days with immediate effect. https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

In practice, this change only applies to the sale of any residential property that does not qualify for Private Residence Relief (PRR). The PRR relief applies to qualifying residential properly used wholly as a main family residence.

Have a look at our Capital Gains Tax Services.

HMRC has listed the following types of property sales that are affected:

• a property that you have not used as your main home;
• a holiday home;
• a property which you let out for people to live in;
• a property that you’ve inherited and have not used as your main home.

There can be penalties and interest if any CGT due on the sale of a UK property is not paid within the stated 60-day time limit. Relevant disposals that completed before 27 October 2021 remain subject to the 30-day deadline.

Please book a free consultation with us if you are looking to know more about the impact of change.