Taxpayers are being reminded that they have until 31 January 2021 to declare any profit made from selling a UK residential property, which was not their main home, during the 2019-20 financial year.
Changes to how taxpayers declare and pay CGT have come into effect since 6 April 2020. UK residents who have sold a UK residential property that is not their main home and make a capital gain where there is tax to pay, can use the online service to inform HMRC and pay the tax due within 30 days of completion. The online service can also be used by Non-UK residents who have, or have not, made a gain on UK land and property.
If you are a landlord or property developer selling on part of their residential property portfolio, or a UK resident who sells a residential property that is not their primary home, the new rule will affect you.
Taxpayers are still required to inform HMRC of any CGT liabilities on their 2020-21 self assessment tax return. Anyone selling a UK property that is their main residence will not be affected.
Taxpayers will continue to complete their tax return as now for any other CGT declarations in the future. They will pay tax on any profit, above their tax-free allowance, when they sell:
- most personal possessions worth over £6,000, apart from their car;
- their main home if they have let it out or used it for business;
- shares; and
- business assets.