Capital Gains Tax on UK Property Service

The deadline for filing and paying Capital Gains Tax (CGT) on the sale of a UK property changed in April 2020. You only have 60 days after the property is sold to file and pay CGT to HMRC. Penalties apply if this report is late.

What is Capital Gains Tax on UK Property?

Capital Gains Tax may apply if you sell a property that is not your main home. This could be a property you have rented out, or a second property, such as a holiday home, for example. If your buy-to-let property is the only property you own, you will still have to pay CGT. If your property has risen in value by more than your capital gains allowance, then you may have to pay CGT. Capital Gains Tax is charged from the profit you make on the sale of the property.

Do I need to make a 60-day report?

If you sell UK residential property where there is CGT to pay, you must report this and make the payment to HMRC within 60 days. A 60-day report period also applies to representatives of trusts and executors of estates selling residential property.

You do not need to report the sale if there is no CGT to pay, when the property is not residential or if it is outside the UK.

There will be no Capital Gains Tax to pay if, for example, you have lived in the property as your main residence throughout your period of ownership. Or there may not be Capital Gains Tax to pay because the gain you have made on the property does not exceed the annual exemption.

A 60-day report also applies to representatives of trusts and executors of estates selling residential property.

Capital Gains Tax on inherited and gifted property.

If you gift a property to a family member or friend, you will have to pay CGT on it as though you have sold the property. This would be worked out by using the value of the property in place of the sale price.

If you sell a property you have inherited without it being your main home, you will need to pay CGT based on the increase value between the date you inherited the property and the date you sell it. You have 60 days from completion, not the date of exchange, to report and pay the CGT.

Property given to a spouse, civil partner or charity is exempt from Capital Gains Tax.

How much is the Capital Gains Tax rate for properties?

The CGT-free allowance is £12,300 for individuals and £6,150 for trusts. After this, those on the basic rate of income tax will pay CGT at the rate of 18%. If your income is above the basic rate of income tax, you will need to pay 28%.

Property gains tax for non-UK residents

Rules known as Non-Resident Capital Gains Tax (NRCGT) have applied since April 2015 to non-residents selling UK property. The changes mean that all NRCGT must be paid and reported within 60 days of completing on the property sale. A report must be filed regardless of whether there is CGT to pay or not.

How we can help you

Our capital gains on UK property service

As chartered tax advisors, we can offer a full-service, including:

  • Calculating how much CGT you need to pay.
  • Reporting it to HMRC on your behalf.
  • Dealing with any investigations from HMRC. These are covered by Tax Investigation Insurance, which ensures that you avoid any additional fees if an investigation occurs. These investigations can be selected at random.

We calculate your Capital Gains Tax bill by:

  • Fully evaluating your income, asset value and circumstances.
  • Applying tax deductions (such as professional fees).
  • Assessing and implementing eligibility for a range of reliefs and exemptions.
  • Reviewing previous losses to reduce your CGT bill.
  • Advising on asset ownership to maximise relief within a family.
  • Reviewing the uses of pensions or trusts in reducing CGT.

Benefits of working with Page Kirk

With this service being standalone and having a one-off cost, you do not need to be a current client of Page Kirk to sign up to our Capital Gains Tax on UK property service.

You will be assigned a dedicated client manager who will be responsible for keeping our services in line with your expectations.

We are proud members of Accelerate, a network which gives us national coverage, up-to-date technical support and training, as well as international coverage through Crowe Global. This means you can rest assured you are getting expert advice.

In addition:

  • We are technically experienced advising clients for over 120 years.
  • Our award-winning team is commercially focused helping clients achieve their goals.
  • We establish what you require and offer tailored packages when you need them. We deliver genuine tax advice, which looks beyond the numbers.
  • We are chartered tax advisers, meaning we are regulated by the professional body CIOT (Chartered Institute of Taxation), which supports excellence in taxation and provides reassurance that you are getting the best service and advice.

For more information, please call 0115 955 5500, email or fill in our contact form below.

We advise that you contact a professional before the sale of the property. If you have already sold the property, please get in contact as soon as possible so you do not incur penalties, charges or interest.

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