Earlier this year, a new rule requiring capital gains tax on UK residential property to be reported and paid to HMRC within 30 days kicked in.
From 6 April 2020, anyone making a taxable gain from the sale of an additional UK residential property will have to pay the tax owed within 30 days of the completion date.
To do this, you need to submit an online capital gains tax disposal return. The tax paid will be treated as a ‘payment on account’ of the capital gains tax for the tax year. You will also still need to report the disposal on your annual self-assessment tax return. Any additional capital gains tax will be due on top of any capital gains tax payments on account you’ve already made.
Who needs to report within 30 days? What information is required? And how do you calculate the liability? Read our update here to find out.