You may have to pay interest and a penalty if you do not report Capital Gains Tax on UK property within 30 days of selling it.
From April 2020 onwards, Capital Gains Tax (CGT) due on residential property has to be reported and paid to HMRC within 30 days via a personal “Capital Gains Tax on UK Property Account”.
Once you have an account, you can sign in at any time to report the Capital Gain or view any returns you’ve already sent. You will need to provide the dates that you took ownership and disposed of the asset along with purchase, sale and associated costs.
You will not have any tax to pay if your total taxable gain is under your CGT Allowance. The rate at which you pay CGT will depend on your other taxable income for the tax year. Residential property gains are taxed at a higher rate than other gains at 18% for basic rate taxpayers or 28% for higher rate taxpayers.
Does the above new legislation apply to you? If you would like any help with your declaration or computation, please do not hesitate to get in touch with one of the team.