Sale of UK Property

UK Residents

From 6 April 2020, UK residents who sell a residential property situated in the UK will be required to notify HM Revenue and Customs (HMRC) and pay the Capital Gains Tax (CGT) due within 30 days of completion.

This requirement only applies when there is a CGT liability arising from the sale of the property. This is likely to be where the property in question has been rented out, used as a second home, occupied rent-free by a relative or inherited and sold for more than the probate value.

The requirement applies to individuals, trustees and Personal Representatives selling UK residential property.

Failure to report and pay the tax within the 30-day deadline period will result in penalties and interest.

Non-UK Residents

Non-UK residents must continue to report sales or disposals of interests in all UK property or land, regardless of whether there is a CGT liability, within the 30-day deadline. This includes disposals of residential properties, non-residential properties and indirect disposals.

From 6 April 2020 non-UK residents will no longer be able to defer payment of CGT until they submit their tax returns. Instead any tax owed must be paid within the 30-day deadline period.

Whether you are UK resident or non-UK resident, if you think that you need to make a submission to HMRC following the sale of a UK property, we would be happy to help.

If you require any further information, please speak to our tax team on 01246 274121 Option 2, or email taxteam@mitchellsaccountants.co.uk