Property tax on property sales; Capital Gains Tax
You need to make a tax return, including a property tax, Capital Gains Tax, calculation, for all property sales whether in the UK or abroad. We will claim your costs and tax allowances to minimise your tax liability and carry forward any losses against future capital gains profits.
Gifts of property are a disposal for capital gains tax purposes and are included in the 60 days requirement. Disposal amount at market valuation.
Built-in safeguards for financial health; safety checks to avoid tax problems. Avoid enquiries, investigations, interest and penalties.
We have extensive experience in property letting and property tax.
Disposing of UK residential property after 6th April 2020 you need to make a return and pay any applicable capital gains tax within 60 days of completion.
- We can do this for you but first but you need to have:
- HMRC Capital Gains Tax on UK property account.
- To help compliance with the 60 days it is best to do this before the sale is completed.
- To set this up you need to have a
- Government Gateway Apply for a Government Gateway
- If you have previously set up either of these you can use the existing setup.
- If you are unsure the Government Gateway system should tell you if you try to create another using the same details.
- If either or both of these has not previously been set up, please move through each of the systems.
- You set up Capital Gains Tax on UK property account by logging into your Government Gateway.
- Let us have your Capital Gains Tax on UK property account number.
- This is 15 characters, for example XYCGTP123456789.
- You will have received this when you established your Capital Gains Tax on UK property account.
- We will then be able to send you a link. The link expires in 14 days.
- Example email:
Please use the following link to accept our authorisation request to access your Capital Gains Tax on UK property account:
- You use the link via your Government Gateway.
- You authorise us or
- Reject the authorisation
- We get an email from HMRC and, if authorised, can then move forward with the Capital Gains Tax computations and filing.
- We obtain all the information about the property from you. Check the list of details
- We agree the computations and Capital Gains Tax payable with you.
- You have the opportunity to make any changes which may be necessary
- You sign-off the return with us.
- We file the return and
- You receive an email advice with the payment amount and payment reference number directly from HM Revenue & Customs.
- We also advise you the HM Revenue & Customs payment reference number which we receive with the filing confirmation.
- You use this number in conjunction with your payment directly to HM Revenue & Customs.
- Capital Gains Tax payment may be by all the normal online methods:
- Bank transfer.
- Debit card.
- Only Corporate credit cards, not personal credit cards, may be used and a percentage payment fee will be charged.
- Personal credit cards have not been accepted for any tax payments since 13th January 2018.
This is because the law changed and bank fees can no longer be re charged to personal credit card holders.
- Gifts of property - Option to pay capital gains tax by up to ten annual instalments.
- Providing you make an election, to your tax office, before the normal due date of capital gains tax payment.
- Payment of capital gains tax may be made by up to ten equal annual instalments.
Late filing penalties
|Time Late||Penalty||Either minimum penalty||Or if Tax is more than £6,000|
|Over 60 Days||£100||-||-|
|61 Days to 6 Months||£100||-||-|
|6 Months to 12 months||-||Either a further £300||Or a further 5% of tax|
|More than 12 months||-||Either a further £300||Or a further 5% of tax|
- Interest will be charged on all tax and penalties after 60 days.
Late payment penalties
|Dates: tax year 2020/21||Penalty|
|After 28th February 2022||5% of tax|
|After 31st July 2022||a further 5% of tax|
|After 31st January 2023||a further 5% of tax|
|Total 15% of tax|
Capital gains tax CGT - Residential property
|Capital gains tax CGT - Residential property||Tax year 2023/24||Tax year 2022/23||Tax year 2021/22|
|CGT Rate - basic rate tax payer – Residential property||18%||18%||18%|
|CGT Rate - higher rate tax payer – Residential property||28%||28%||28%|
|Higher rates apply to total annual income and capital gains above:
For Capital gains tax, there is no additional rate above 28%.
|If you only own one property, which has always been your main residence, Private residence relief applies to the whole period, no Capital gains tax is payable and 60 day procedures do not apply.|
|An Additional relief on capital gains on a Residential property which has BOTH been your main residence AND has been let for part of the time on a commercial basis. Not applicable if it has been let during the period of ownership without being your main residence.|
|Private residence relief: Actual period of residence plus, in the period prior to disposal||9 Months||9 Months||18 Months|
|Lettings relief: the Lower of Private residence relief or £40,000 has not been available since 6th April 2020.|
Annual CGT exemptions – individuals (per year)
In the year of sale; this does not accumulate over years
(Tax year 2024/25 £3,000)
|When gains are below the Annual exemption and sale proceeds are below four times the Annual exemption there is no need to declare the disposal.
If sales are over four times the Annual exemption, do declare the sales; even if profits are below the Annual exemption.
Sales from 06/04/2020 you also need to use the 60 day reporting procedure in these circumstances.
|Where 60 day procedures apply, the Capital gains tax computation also needs to be included in your annual self assessment tax return.
The tax payable may be slightly different depending on how accurate your estimate of other income has been in the 60 day calculation of tax.
More or less may be payable at the CGT Rate - higher rate; see above.
- Apply for a Government Gateway
- You first enter your email address.
- You get back a confirmation code which you use to move forward with the application.
- Have available:
- Unique Taxpayer Reference UTR - if you have one.
- National Insurance number.
- Driving license or passport details to link you into other Government records.
- Telephone number.
- Apply: "Create sign in details" on the Sign in screen.
- You get a Government Gateway number.
- Set the Password.
- You are then ready to use the Government Gateway
back to Next step after Government Gateway
- Please let us have the following information and copy documents:
List of details
- Property address and postcode.
- Date you purchased the property.
- Purchase price and a copy of the solicitors completion statement.
- Buying costs: legal, stamp duty, and survey costs. Any other costs.
- (Non UK resident owners, who purchased before 5 April 2015, market value on 5 April 2015.)
- Dates when you may have been resident in the property.
- Dates when the property may have been partly rented, while you were still resident.
- Date you sold the property and a copy of the solicitors completion statement.
- Sale price. Or valuation if the property was gifted.
- Selling costs; legal, estate agent and any other costs.
- Cost of improvements to the property and dates of improvements.
- If the property has been rented, improvements to the property are any costs of improvements, since the date of purchase, which were not previously claimed in tax returns of rental income.
- Copy documents:
- You still need to claim appropriate costs even if you cannot find the documentation.
- If you do not have documentation, make a careful schedule of estimated costs with dates.
- If there sould be an HMRC enquiry, documentation will be requested by HMRC.
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