HMRC Improve CGT Reporting Service Functionality

25-08-2020

HMRC have updated their capital gains tax (CGT) reporting system to allow reports of second and subsequent disposals of UK residential property to be made online.

A new requirement to report and pay CGT on disposals of UK residential property within 30 days of completion applies to disposals made by UK resident taxpayers on or after 6 April 2020.

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) HMRC did not issue late penalties to any transactions completed between 6 April and 30 June 2020, provided the gain was reported and any tax due paid by 31 July 2020. Anyone who completes the sale of a property from 1 July 2020 onwards has 30 calendar days to report and pay the tax due.

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, if you need to amend an existing return 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

Source: Gov UK