Capital gains tax (CGT) is normally payable by 31 January following the tax year in which you sold the asset. This can give you up to an extra 22 months to hold on to the full proceeds.

Sadly, the tax rules changed from 6 April 2020 and you must now pay any CGT due on the sale or gift of UK residential property within 30 days of the completion date. You must also report the gain in a new online UK property account within 30 days. We can help you with the CGT reporting but 30 days from completion of the sale does not leave much time to gather all the information about the history of the property to calculate the tax due.

Late-filing penalties will apply if the 30-day deadline is missed. These penalties were suspended for sales completed before 1 July 2020. However, penalties now apply from £100 for the shortest delay to over £1,000 for a six-month delay.

The 30-day reporting deadline does not apply for sales of other assets such as shares and commercial property. All sales on which CGT is due, or a loss is made, must be reported on your annual tax return.

If you are planning to sell a property, please discuss the tax position with us ASAP and preferably before it is offered for sale.

Last updated: April 29th 2021.