Do I have to pay tax on gains from my property investments?

Any Capital Gains Tax (CGT) due on UK residential property disposals made by UK residents must be reported and paid within 60 days of completion.

Those who own a property other than their main residence will have these CGT rules applied to them.

This includes let properties, second or holiday homes and homes with significant grounds and gardens, as they may not benefit from Principal Private Residence (PPR) relief.

Reporting CGT

To report the sale of a UK residential property to HM Revenue & Customs (HMRC) it may be necessary to create a Capital Gains Tax on UK property account, which we can help with.

This will allow you to:

  • Report the disposal of UK residential property or land;
  • Pay any tax owed for that disposal; and
  • View previous and current returns.

Whilst there are some exemptions from completing a return, for example where no tax is due, the short deadline gives limited time to retrieve supporting documentation, prepare CGT calculations or obtain valuations if needed.

Non-UK residents must also report all sales or disposals of UK property (residential and non-residential) within 60 days – even if there is no tax to pay or they have made a loss.

Take action

It is easy to overlook these requirements during the sale of a residential property, but this information must be reported to HMRC within this new time frame and any tax paid.

Penalties and interest for late filing are no longer linked to the tax return filing deadlines, which were previously made on an annual basis.

Penalties could now start within 60 days of completion!

If you have any queries about the CGT implications of selling a property or you have other concerns about property tax, please speak to us.