If you own property there are a number of tax implications which you need to be aware of.
Timing of Capital Gains Tax Reporting
Since 6 April 2020, any gain on a residential property where CGT is due must be reported and the CGT paid within 60 days of the sale by using the online property disposal return . For disposals before 27 October 2021, this 60 day time limit was 30 days.
How the gain is calculated is dependent on whether you are a UK tax Resident or not - this is outside the scope of this Blog.
In a recent update, HMRC has confirmed that declaring a capital gain on the disposal of a UK residential property under Self Assessment does not remove the requirement to file a 60-day property disposal return.
Where an online return has not been filed but the gain has been declared under Self Assessment, a late property disposal return must still be filed and this must be done by way of a paper form. Currently the paper form is not available online and can only be obtained by calling the HMRC helpline.
Since the 60-day return will be late, penalties and interest will be due. Taxpayers who are in this position should file the paper return as soon as possible to prevent further penalty charges.
The only exception is where the gain is declared under Self Assessment first because the Self Assessment return is filed before the 60-day deadline. In this case no online property disposal return is required. In reality, this is likely to apply in a limited number of circumstances.
Timing of Capital Gains Tax Reporting
Since 6 April 2020, the following has been the case:
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