HMRC are keen to offer support to customers to ensure Capital Gains Tax (CGT) obligations are met accurately from the outset. They have communicated a reminder that if you have recently sold a residential property (or multiple properties) from which you derived rental income, it is crucial to report it as a CGT disposal within a 60-day timeframe. It is only necessary to report disposals which result in a CGT liability so it is important that the capital gain is calculated following the disposal of residential property to determine if the 60 day CGT report is necessary. Any tax due also needs to be paid within 60 days of completion of the sale.
It is also important to remember that a gift of a property also constitutes a disposal and the same 60 day reporting and payment obligations would apply.
As it is possible to only have one main residence for CGT purposes, if you sell a second home, CGT could be due on its disposal.
If you are considering a disposal of a residential property, either by gift or sale, please contact our team who will be happy to review the position for you and advise what action is necessary. We will also deal with the submission of the CGT report to HMRC and confirm tax payment details to you.