Capital Gains Tax (CGT) due on residential property disposals by UK residents has had to be reported and paid to HMRC within 30 days of completion from 6 April 2020. 

Announced in the Autumn Budget 2021, the deadline for UK residents to report and pay CGT on the sale of UK residential property increases from 30 days to 60 days after completion. The change came in to immediate effect and applies to completions made on or after 27 October 2021.

Budget documents confirm that when mixed-use property is disposed of, the 60-day payment window will apply only to the residential element of the property gain. 

The rules mainly affect those individuals selling a second home or rental property on which full private residence relief or other reliefs such as capital losses are not available. 

From 27th October 2021 the chargeable gain on disposal of a UK residential property must be reported by submitting a residential property return within 60 days of completion. If the property is owned jointly, each owner must submit a return. The entire amount of CGT is payable by the same date. 

For non-UK residents disposing of any type of property in the UK, whether directly or indirectly owned, the deadline has also been increased from 30 days to 60 days. 

Although the deadline has been extended from 30 days to 60 days this is still a fairly quick turnaround to make the CGT calculations. Note that capital gains tax is the top slice of total taxable income and capital gains in the tax year of sale. 

We can help to ensure that the residential property return is correctly filed and any CGT due is accurately calculated within the 60 day payment window. 

If you would like to know more about this service please contact me via Emily.hillier@shawgibbs.com