Pay CGT on property in 30 days

Pay CGT on property in 30 days


From 6 April 2020, if there is capital gains tax due on a property disposal, an online property disposal return will need to be filed within 30 days of the completion date.

If there is no gain, or the gain is completely covered by exemptions or losses, then the return will not be necessary.

HMRC are also expecting UK landlords to pay the capital gains tax ( CGT ) due on the sale within 30 days from completion. This is described as an ‘on account’ payment, but in reality it is expected to be the full amount of CGT. It will also be possible for HMRC to enquire into the property disposal – months before a self-assessment return is completed!

If there is a taxable gain, the taxpayer will then be expected to select the correct rate ( 18% or 28% ) and take into account their account exemption before calculating and paying the tax due.

After the end of the tax year, the taxpayer will need to include the property gain within their self-assessment return, when the tax will be calculated within the context of their other taxable income. There may then be an additional payment of CGT due, or indeed a repayment.

If you are making a property disposal after 6 April, please do contact us and we will be happy to complete the return within the deadline and calculate the tax, keeping records for any possible enquiries.

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