Capital Gains Tax

CGT reporting changes for property disposals

The reporting of capital gains tax (CGT) on sales of UK property is changing from 6 April 2020.

The changes will affect mainly UK resident individuals and trustees who will be required to file a UK land return and pay CGT upfront within 30 days of completion. The change will also affect non-UK resident individuals and trustees who, in addition to the already existing requirement to report the disposal to HMRC within 30 days of completion, will now be required to pay any CGT upfront within that same timeframe. Certain exemptions from filing apply to UK residents.

As with any tax filing and payment obligations, HMRC will levy late filing penalties in the case of non-compliance and late payment interest will be charged at HMRC’s standard rate (currently 3.25% per annum but due to decrease from 30 March 2020).

The calculations of capital gains and the estimating of the capital gains tax can be complex and may require valuations. Therefore, we would advise that you contact us as soon as your property goes on the market to ensure a timely filing.

For more information, please visit our website for an article that discusses how UK residents and non-residents are affected:

Should you have any queries or questions in respect of the above, please do not hesitate to contact your main contact at Arnold Hill.
Contact Number - 0207 306 9100

The information in this article is believed to be factually correct at the time of writing and publication, but is not intended to constitute advice.  No liability is accepted for any loss howsoever arising as a result of the contents of this article. Specific advice should be sought before entering into, or refraining from entering into any transaction.