Capital Gains Tax Reporting deadline extended

As announced in the Autumn Budget, the deadline for UK residents to report and pay capital gains tax (CGT) on the sale of UK residential property has been extended from 30 days to 60 days.

The change comes into immediate effect and applies to property completions on or after 27 October 2021.

When is there a requirement to submit a report?

A report and tax payment is required whenever a capital gain is made on the disposal or transfer of residential property or land, and so will affect Landlords, second home owners, divorcing couples and parents gifting assets to children.

Are any disposals excluded from reporting?

There isn’t a requirement to submit a return in the following circumstances:

  • The disposal was before 6 April 2020
  • The entire gain is covered by Private Residence Relief
  • The transfer was made to a spouse/civil partner
  • The gains (including any other chargeable residential property gains in same tax year) are within the capital gains annual exemption
  • The Property was sold at a loss
  • The Property is outside UK

How do I submit a report?

A Government Gateway user ID will be needed to set up a UK Property account through which to file the report, and interest and penalties may be charged if you do not report and pay any CGT due on time.

Capital gains will also need to be reported on your Self Assessment tax return in the following tax year, as normal, together with a note of any CGT already paid.

What information will I need to calculate the gain and tax due?

To report any gains and tax due, you will need:

  • Details of how much you bought and sold the asset for
  • The dates when you took ownership, and disposed, of the asset
  • Any other relevant details, such as costs of improvements to the property, the costs of disposing of the asset and any tax reliefs you’re entitled to
  • Calculations for each capital gain you need to report

For help with calculating your capital gains tax liability, reporting disposals of UK residential property, and associated advice on capital gains tax planning, please contact your local Perrys branch.

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