Residential property sellers: reporting gains within 30 days

For a UK resident, since 6 April 2020 where a UK residential property is disposed of, the resulting capital gain needs to be reported and the capital gains tax paid within 30 days of completion of the disposal. There were a number of teething problems with the HMRC's new online reporting system and so HMRC stated that there would be no penalties imposed for late returns for disposals made in the period 6 April 2020 to 30 June 2020, provided the returns were submitted by 31 July 2020.

With the system now fully up and running, a gain on a disposal of residential property since 1 July 2020 must follow the 30 day rule, or otherwise, HMRC will charge interest on any late payment of Capital Gains Tax and possibly issue penalties on late submission of the report.

Although HMRC have tried to make the process as simple as possible there are still many difficulties in completing and submitting the form. With the steep increase in residential property disposals in the last two months we are finding that an increasing number of clients and supporting lawyers are requiring our help in the reporting process. If you are a UK resident selling a residential property, then please do get in contact with us to help with the return that needs to be submitted.

For non-UK residents that dispose of UK residential property, there is a similar method of reporting and payment deadline which has been active since 2015. However, whereby UK residents must report a gain to HMRC within 30 days, non-residents must report to HMRC within 30 days of a disposal whether there is a gain or not.

If you are a non-UK resident about to dispose of a property, then please do contact us right away for help.

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