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Report and pay Capital Gains Tax on UK property

Contents

  1. Overview
  2. How to report and pay the tax
  3. Before you start
  4. If you’re an agent
  5. If you’re representing a trust
  6. If you’re a capacitor or personal representative

Overview

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home. For example, buy-to-let properties, land or inherited property.

In most cases you do not need to pay the tax when you sell your main home.

For UK property disposals made from 6 April 2020, you have 30 days after the property’s completion date to report and pay any Capital Gains Tax due on your UK property disposals.

Due to coronavirus (COVID-19), you will not get a late filing penalty for any transactions completed on or after 6 April 2020 to 1 July 2020 and reported up to 31 July 2020.

Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 calendar days.

Interest will be charged if the tax remains unpaid after 30 days for all transactions from 6 April 2020.

How to report and pay the tax

You’ll need to create a Capital Gains Tax on UK property account before you can report and pay the tax using this service.

If you’re a resident or representing a trust, you can use this service to:

  • report the disposal of UK residential property or land made from 6 April 2020
  • pay any tax you might owe for that disposal
  • view your previous and current returns

At the moment, only the first return for UK property sales or disposals in the tax year can be submitted online. If you need to amend an existing return or complete any further returns for the tax year you will need to contact HMRC.

If you’re a non-resident you must use this service to report sales or disposals from 6 April 2020 of:

  • residential UK property or land
  • non-residential UK property or land
  • mixed use UK property or land
  • rights to assets that derive at least 75% of their value from UK land (indirect disposals)

If you’re a non-resident, you must report all sales or disposals of UK property, even if you have no tax to pay or have made a loss.

Before you start

To use this service, you’ll need a Government Gateway user ID and password. If you do not have a user ID, you can create one.

You can contact HMRC if you need help accessing the service.

Get the following information ready:

  • property address and postcode
  • date you got the property
  • date you exchanged contracts when you were selling or disposing of the property
  • date you stopped being the property’s owner (completion date)
  • value of the property when you got it
  • value of the property when you sold or disposed of it
  • costs of buying, selling or making improvements to the property
  • details of any tax reliefs, allowances or exemptions you’re entitled to claim
  • property type, if you’re a non-resident

Start

If you’re an agent

Find out how to report your client’s Capital Gains Tax on UK property disposals.

If you’re representing a trust

The trust must be registered. You’ll need the trust’s Self Assessment Unique Taxpayer Reference or Trust Registration Number.

If you’re a capacitor or personal representative

A capacitor is someone who helps someone else deal with their tax. A personal representative is someone responsible for settling the affairs of someone who has died.

If the disposal was made by the deceased’s estate during the period of administration, you’ll need to contact HMRC and ask for a paper version of the return to be posted to you.

To use this service for another person, where the the disposal was not made within a period of administration, you’ll need to:

  • sign in to your own Capital Gains Tax on UK property account or create one if you do not have one
  • start a new return from your account
  • select that you’re completing the return for someone else or someone who has died
  • enter the person’s full name
  • provide evidence that you have the authority to act on their behalf, for example a lasting power of attorney (LPA) document

You’ll need to enter one of these reference numbers for the person you have the authority to act for, if you have one:

  • National Insurance number
  • Self Assessment Unique Taxpayer Reference
  • Capital Gains Tax on UK property account number

The details you provide must match the details we hold about the person.

If you’re a personal representative, you’ll also need to provide the date the person you’re representing died.

You should download or print a copy of the return for your records. This is because once the return has been sent to HMRC it will not be available online to view or amend online.

You can only use this service to send the person’s or the estate’s first return for the tax year. Contact HMRC to send additional returns or amend a return.

Example

Mr Andrews died on 20 April 2020. Mr Smith is the personal representative for Mr Andrews’ estate. Before he died Mr Andrews had agreed to sell his UK residential investment property.

Mr Andrews exchanged contracts on 15 April 2020 before he died. After he died Mr Smith completed the property sale. Capital Gains Tax was due.

To report and pay the tax, Mr Smith signed into his own Capital Gains Tax on UK property account. Mr Smith started a new return and selected he was completing the return for someone who had died. Mr Smith entered the details, checked and sent the return, and paid the Capital Gains Tax due.

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