Further to the previous article on this topic, further guidance has been released from HMRC, now that the new legislation is in force.
From the start of this tax year, any Capital Gains Tax (CGT) that is due from the sale of a residential property must be declared and paid within 30 days of the sale.
Individuals must calculate the gain themselves (although they can use an accountant to help with this). If tax is due (after taking into account the annual exempt amount), the sale must be declared and tax paid using HMRC’s online portal here.
To use the portal, individuals must be registered to use the Government Gateway and will need their Gateway ID and passcode. If anyone has issues using this system, they should contact HMRC on 0300 200 3300.
The following information is required, so we suggest having it to hand prior to starting this process:
- 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 are entitled to claim
- property type, if you’re non-UK resident
Agents, such as accountants, can also declare the Capital Gains Tax on behalf of individuals. Should this be a preferable option, it would be advisable to speak with your accountant regarding this.