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If you are a UK resident individual or trust (not company), selling your UK residential property after 5 April 2020, you will need to file a UK land return to HMRC and make a payment on account to HMRC, within 30 days of completion, to avoid penalties and/or interest. This however is not required if any of the below apply to you:
- If the gain is less than your unused Capital Gains Tax free allowance for the year;
- If the gain you make is covered by principal private residence relief (PPR) – refer to our BLOG for more info;
- If you have sufficient capital losses (incurred by the date of completion) that cover the gain on the sale of the property;
- If you make a loss on the sale of the property.
Before 6 April 2020, you had until 31 January following the end of the personal tax year of the property sale to declare taxable gains and make tax payments.
This blog is for information purposes only, and is not intended to provide tax advice – for this, you should consult an accountant.