Property Tax – CGT Changes


A major change in the reporting and payment of Capital Gains Tax (CGT) on UK residential property disposals took place on the 6th April 2020.

It is now necessary within 30 days of completion of sale to submit a provisional calculation of any gain to HMRC and pay any tax that is due.  Ultimately the gain will still be recorded on the tax return and any over or under payment of tax dealt with in due course.  If tax is overpaid then this will not be repayable until the tax return is submitted. Prior to this date CGT was recorded on an individual’s personal tax return and tax payable on the 31st January following the end of the tax year.

If a property, say a buy to let investment, is sold on the 31st May 2020 any gain should be reported and CGT paid by 30th June 2020.

Note that the new 30-day reporting and payment obligation will not apply where no tax is payable such as the disposal of your principal private residence or a sale at a loss.

The HMRC website provides further information.

If you are considering selling your property and wish to know how we can help, call 0131 473 1591, or use our online contact form.