Capital Gains Tax and the UK Residential Property Disposals Return

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17 October 2023

Capital Gains Tax and the UK Residential Property Disposals Return

If you are selling or thinking of selling a second home or a property that is not your main residence then make sure you are aware of the disposal return deadline.

Capital Gains Tax and the UK Residential Property Disposals Return

Under the capital gains tax UK property disposals compliance regime, the taxpayer is required to file a capital gains tax UK property disposals return and pay an estimate of the capital gains tax due within 60 days of completion of the transaction (not the date of exchange, which is the usual operative date for capital gains tax).

The regime applies to UK and Non-UK Residents on the sale of any interest in UK Residential property. The changes do not cover non-residential property or a residential property that was the sellers only or main residence throughout its ownership.

HMRC will issue penalties for any returns submitted late and interest will accrue if the tax due is paid late.

We have evidence that some solicitors are not advising vendors of this requirement at the time the sale contracts are drawn up.

It is important that you inform your accountant as soon as possible should you dispose of an interest in UK Residential Property so that the appropriate reporting can be done on your behalf and avoid any late filing penalties.

How can Haines Watts help?

If you are thinking of selling a residential property and you have more than one property then please get in touch. In order to meet the 60 day deadline for filing and paying tax you need to take action immediately.

Please get in touch when you are sure you have sold your property even if no money has changed hands.
We can prepare the necessary paperwork ready to file so you can report and pay any tax due avoiding penalties.

To find out more about how Haines Watts can help you with your tax affairs visit our website here. You can contact our tax team on 01379 640555 or email eastanglia@hwca.com.

We are here to help.