SELLING A PROPERTY NOT YOUR PRINCIPLE PRIVATE RESIDENCE – CGT PAYMENT IN YEAR CHANGE
If you have a property that is not your Principle Private Residence and intend to sell, or have sold it, from 06 April 2020, you will fall under the 30-Day CGT POA Reporting Legislation.
The trigger date for this reporting is the date of completion of the sale of the property.
The 30-day reporting for UK residents covers disposals of residential property, or disposal of an interest in a property which has included a dwelling at some point during ownership.
So for example if a property was a first floor flat with a commercial property on the ground floor, you would only report the gain on the flat.
HMRC now expect all tax payers that have a CGT Liability Gain – including individuals, trustees and personal representatives, to report this sale and pay their CGT on account within 30 days of completion of that sale. This is whether you sell or gift UK residential property.
If you do not have a CGT gain then you do not need to report or pay the CGT payment on account.
If you have sold a property you will need to complete a report online via the UK Property Reporting Service, the link is below:
We are not permitted as your Agents to make a report on behalf of our clients, unless specific authorisation has been given. Any client that needs to report, will need to register with the UK Property Reporting Service and carry out a ‘digital handshake’ with us to confirm to HMRC that we are authorised to act for this 30-day reporting if you wish us to file this report. This service is outside of our normal service provision. and is not included in our fee.
If you feel you are not ‘tech savvy enough’ to carry out this online, then you can call HMRC on 0300 200 3300 to request a paper return (PPDCGT).
Once this has been completed and any CGT paid on account, you will then need to provide this information to us when completing your Self-Assessment Tax Return. This POA will be used as a credit against any future Self Assessment Tax Liabilities in the tax year of disposal.
Please call us if you have questions/queries with regard to this email.
The JSR Team
‘Continuing to Support our Clients’
