Capital Gains Tax On Property: Your Guide to HMRC Reporting Requirements
What is Capital Gains Tax on Property in the UK?
If you sell or dispose of an interest in a UK property, you may be liable to pay Capital Gains Tax on Property in the UK rates. The rules for reporting and paying CGT changed on 6 April 2020, with further amendments on 27 October 2021. These changes apply to both UK and non-UK residents, though exemptions may apply if the property was used solely as your private residence throughout ownership.
Capital Gains Tax on Property – If You Live in the UK
For UK residents, the rules apply only to disposals of UK residential property.
From 27 October 2021, UK residents making a taxable gain must:
- Report the disposal to HMRC and
- Pay the tax within 60 calendar days of the completion date.
For completion dates before 27 October 2021, the deadline remains 30 days.
Exemption: If the property was your main home and used exclusively as your private residence during the ownership period, it will qualify for Private Residence Relief, and no Capital Gains Tax UK Property will be due.
Capital Gains Tax on Property – If You Do Not Live in the UK
Non-UK residents must report disposals of UK property or land within 60 days of the completion date, even if no CGT is due.
This includes:
- Residential properties
- Non-residential properties
- Indirect disposals (e.g., selling shares in a property-rich company).
Since 6 April 2020, it is no longer possible to defer CGT payment via a Self-Assessment return. Any Capital Gains Tax UK Property owed must be paid within the 60-day reporting window.
How to Report Capital Gains Tax on UK Property to HMRC
To report a property disposal, you must:
- Register for a Personal Tax Government Gateway:
If you don’t already have one, register online. - Report Your Disposal:
Log in to your Government Gateway account to report your Capital Gains Tax on UK Property.
Information Required for Capital Gains Tax UK Property Reporting
When reporting to HMRC, ensure you have the following details:
- Property address and postcode
- Date you acquired the property
- Exchange and completion dates
- Property values at acquisition and disposal
- Costs of purchase, sale, or improvements
- Periods you lived in the property (if applicable)
- The property value on 31 March 1982 (if owned at that time).
How to Pay Your Capital Gains Tax UK Property
The tax is due within 60 days of the completion date. Payment options include:
- Bank transfer
- Debit card
- Corporate credit card
You can pay through your Government Gateway using the payment reference number on the confirmation page after you’ve sent the return.
How Much Capital Gains Tax Will You Pay?
The rate for Capital Gains Tax UK Property is either:
- 18% or 24%, depending on your income for the tax year (6 April – 5 April).
To minimize your liability, it’s crucial to seek professional advice. Book a call with one of our accountants today.
Need Help with Capital Gains Tax UK Property Reporting?
Our Specialist Tax Department can:
- Calculate your tax liability
- Submit your return to HMRC
- Maximize reliefs and minimize your tax
Online Capital Gains Tax UK Property Service
We also offer an Online Capital Gains Tax Calculator Service to simplify the process. Provide your details digitally, and we’ll take care of the rest.
Contact us today to discuss your Capital Gains Tax on UK Property.