UK Property Account for Capital Gains Tax Return

Published / Last Updated on 19/05/2021

Since April 2020 the disposal of a UK residential property (not usually your main residential home) i.e. it has been an investment property at some point and has capital gains tax to pay, CGT has to be calculated, reported and tax paid to HMRC within 30 days of completion. The relevant legislation can be found in schedule 2 of Finance Act 2019.  You may have to pay interest and a penalty if you do not report gains on UK property within 30 days of selling it.

Self Assessment Tax Returns:  UK Property Capital Gains are no longer reportable via self assessment.  For other property gains (overseas) and other capital gains e.g. shares, crypto currency etc are still reported via Self Assessment by 31st January at the latest after the end of the relevant tax year e.g. gains in Tax Year 2021/2022 are reportable via self assessment by 31st January 2023.

UK Property Account:  You must now set up a new and separate UK Property Account via your Government Gateway/Personal Tax Account when reporting Capital Gains or Capital Losses on UK Property.  UK Property gains in tax year 2021/2022 must be reported within 30 days of the property disposal.

For UK residents: The starting point i.e. the ‘acquisition price’ is when the property was actually purchased.  This can be reported to HMRC online via your Government Gateway by setting up a UK Property Account or you can authorise your tax adviser via your Gateway to set you up a UK Property Account (this is separate to your Self Assessment account).

Non-UK residents: Non-residents never used to be liable for UK Capital Gains Taxes but now are for UK asset disposals from 05/04/2015.  UK residential properties for non-residents are required to be valued as at 05/04/2015 as the ‘acquisition price’.  Non-UK residents must still report a property disposal within 30 days even if there is no capital gains tax to pay.

Late Filing:  If you do not submit your UK Property Account return within 30 days of completion, you will face late filing penalties and if tax is due you will also pay interest.

Appointing a Tax Adviser:  Usually, when appointing your agent/tax adviser, you complete a HMRC form 64-8 for self assessment.  This doe not work for UK Property Accounts.  The UK Property Account is set up via your online Government Gateway or you can authorise your Tax Adviser (via Government Gateway) and they can submit your UK Property Account Capital Gains Tax return.  You can no longer use form 64-8.

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