CGT Payment Is Changing: What You Need To Know


27 February 2020

By Marc Dorsett

Capital Gains Tax payment for UK property sales is changing.

The deadlines for paying Capital Gains Tax after selling a residential property are changing in April.

From 6th April 2020, if you’re a UK resident and sell a residential property in the UK you’ll have 30 days to tell HMRC and pay any CGT owed.

If you don’t tell HMRC about any Capital Gains Tax within 30 days of completion, you may be sent a penalty as well as having to pay interest on what you should have paid.

What is Capital Gains Tax?

Capital Gains Tax is a tax on the profit, less allowable costs, when you sell (or 'dispose of') something that has increased in value.

When you might to make a Capital gains Tax report and make a payment when you sell:

  • a property that you’ve not used as your main home for the whole ownership period
  • a holiday home
  • a property which you let out for people to live in
  • a property that you’ve inherited and have not used as your main home

When you don't need to make a report and pay CGT:

  • a legally binding contract for the sale was made before 6 April 2020
  • you meet the criteria for Private Residence Relief in full
  • the sale was made to a spouse or civil partner
  • the gains (including any other chargeable residential property gains in the same tax year) are within your tax free allowance (called the Annual Exempt Amount)
  • you sold the property for a loss
  • the property is outside the UK

HMRC plan to launch an online service that will easily allow those who need to make a report and pay CGT owed with ease.

If you aren't sure how/if you need to report any sale please contact Marc Dorsett in our Private Client department who will be happy to help with any reporting.