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Capital Gains Tax (CGT) Reporting & Payment Changes

3rd February, 2020

From 6 April 2020 individuals, trustees and personal representatives realising a taxable capital gain from the sale or other disposal of UK residential property will have to submit a Residential Property Return and pay capital gains tax (CGT) within 30 days of completion of the disposal.

This change will predominantly impact those disposing of second homes or rental property and is being implemented to reduce the time between selling a residential property and HMRC being paid the tax due from the sale.

For cases in which calculating the capital gain might be complex estimates and assumptions may be used under certain circumstances.

It is important to note the relevant date of a disposal for CGT purposes is the date of exchange of contracts, however the 30-day submission and payment window will begin from the date of completion.   

Taxpayers who are within the self-assessment system will have to report the capital gain on their annual tax return as well as completing the 30-day residential property return.

A return is not required where the capital gain is not taxable, e.g. if the gain is eliminated by principal private residence relief. 

If you are considering selling a residential property after 6 April 2020 please let us know. We will be happy you to assist with the submission of your Residential Property Return.