Anyone who sells a residential property in the UK is subject to capital gains tax (CGT), which needs to be reported and paid within 30 days of the deal’s completion date. Typically, this needs to be done online through a UK property account activated for that purpose. This reporting then needs to be repeated when completing your self-assessment tax return after the tax year end.
For those who live outside of the UK, the report must also be submitted within 30 days for any commercial or residential property in the UK held directly or indirectly. However, it has become apparent that getting through to the HMRC security system even to set up the online property account can be very tricky and, in some cases, impossible.
Luckily, HMRC has now noted these issues and has extended this period. Reporting and paying CGT on relevant property disposals has changed from 30 days to 60 days for deals completed on and after the 27th of October 2021. Any property deals completed before this date will still need to be reported within 30 days, providing that tax is payable.
In the instance whereby UK residents make gains from mixed-use properties (a mix of a commercial and residential property, such as a shop with a flat above), only the residential part of the gain needs to be reported on the UK property account.