All gains realised on UK residential property disposals must be reported to HMRC via a CGT return. The return, captial gains computation and the arising capital gains tax must be submitted and paid, within:
- 60 days if the completion date was on or after 26 October 2021.
- 30 days if the completion date was between 6 April 2020 and 26 October 2021.
A captial gain on a property must be completed, on a captial gains tax return, regardless of whether you already complete a self-assessment tax return.
All other Capital Gains can still be reported as usual under Self Assessment.
If you are outside the Self Assessment regime, you do not have to register for Self Assessment, you just have to report the capital gain via the CGT return.
Penalties
if the return is filed late then HMRC will charge the following penalties:
- an initial penalty of £100 on the day after the date your return is due
- daily penalties of £10 per day for 90 days after your return is 3 months late
- a ’further penalty’ of £300 or 5% of HMRC’s estimate of your liability to tax (whichever was the higher) after your tax return is 6 months late
- a second ’further penalty’ of £300 of 5% of HMRC’s estimate of your liability to tax, (whichever was the higher) after your tax return is 12 months late
HMRC may also charge interest for late payment of the tax liability.
We offer a fixed fee service for the calculation of the capital gains tax liability (£200) and preparation and submission of the CGT return (£150).
Please don’t hesitate to contact us if you require any assistance.