Reporting capital gains tax due on UK property

This factsheet covers capital gains tax (CGT) reporting requirements for both UK residents and non-UK residents who sell land and property that is situated in the UK.

Disposals made by UK-residents

You must report and pay any Capital Gains Tax due on UK residential property within:

• 60 days of selling the property if the completion date was on or after 27 October 2021; or
• 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021.

If the property was jointly owned, you must report the gain for the share that you own.

Reporting the gain

The gain must be reported to HMRC using your Capital Gains Tax on UK Property account. For UK residents, the disposal does not need to be reported if there is no CGT to pay.

Details of the disposal should also be included in your self-assessment tax return for the period that covers the completion date. In some cases, it may transpire that you paid too much CGT on the disposal. You would think that submitting your self-assessment would then generate a refund, but this is not the case; HMRC suggest that you either amend your UK Property account before submitting your self-assessment or call HMRC to request that they manually offset any CGT overpayment against your total self-assessment tax bill.

Disposals made by non-UK residents

Non-UK resident individuals and trustees must report disposals of all UK land and property, be it residential, non-residential, mixed use, or rights to assets that derive at least 75% of their value from UK land. The disposal must be reported even if there is no tax to pay or a loss was made.

If the property was jointly owned, you must report the gain for the share that you own.

The time limit for reporting the disposal and paying any CGT due is the same as for UK-residents. The gain must be reported to HMRC using your Capital Gains Tax on UK Property account.

Since 6 April 2019, Corporation Tax is charged on gains from UK property or land for all non-resident companies.

What is the completion date?

For capital gains tax purposes, the gain arises on the date conveyancing is completed, which is the date on which the seller receives the purchase price for the property, transfer documents are dated, and the buyer becomes the legal owner of the property. The disposal must be reported to HMRC within 60 days of this date.

Further reading

For details of how to set up your UK Property account and the information you’ll need to report your gain, please see:

Useful links
Overview of BARR: https://www.gov.uk/business-asset-rollover-relief

More detailed guidance and Form HS290: https://www.gov.uk/government/publications/business-asset-roll-over-relief-hs290-self-assessment-helpsheet