Tight capital gains tax reporting deadline for residences
Contrary to popular belief, the profit you make when you sell your home, or a former home, is not automatically exempt from CGT.
This tax exemption applies to gains that relate to periods in which you lived in the property as your main home. However, it can be extended to certain periods when you were not living in that property.
For example, the last nine months of ownership are exempt from tax, which is extended to 36 months where the owner or their spouse is disabled or has moved into residential care.
Where you sell or transfer any UK residential property, any capital gain producing a CGT liability needs to be reported, and the CGT paid to HMRC, within 60 days of completion of the disposal.
The gain must be reported through your online UK Property Account and on your self-assessment tax return for the year, if you are someone who has to file one (e.g. due to being self-employed or having rental income). We can help you with this reporting.
Talk to us if you are planning to sell a residential property, so we can collect all the information needed to calculate the gain within the 60-day reporting period. There are automatic penalties if the reporting deadline is missed.
