Sold a property? You may need to tell HMRC

If you're selling a property that wasn't always your main residence, you must consider your tax reporting obligations sooner rather than later.

If you’re a UK resident, and Capital Gains Tax (CGT) is payable on the sale of a property, a 60-day return may be required.

If you’re non-UK resident, you are required to submit a return to HMRC regardless of whether there is any CGT due. Your return will also report all disposals of UK land (not just disposals of residential property). This extends to indirect disposals of UK land, for example when a non-resident sells shares in a company that derives 75% or more of its gross value from UK land. We advise you seek professional advice.

What to do if you’re thinking of selling residential property?

We recommend you speak to an accountant ahead of the sale. An experienced, local accountant can help you to identify any planning opportunities and talk you through your compliance requirements.

What information will you need?

As well as details of the sale, including sale proceeds, you’ll also need the following information to complete your 60 day return:

• details of the original purchase of the property
• details of subsequent enhancement expenditure
• details of periods you occupied the property as your main residence, when it was let out, and when it was unoccupied
• details of professional fees, such as conveyancing and estate agent fees on the sale and purchase of the property.

This can be very complex, depending on the use of the property, and factors including whether you were working abroad for any of the time can make a difference. It's imporant to speak to an accountant who knows the legislation so you can make sure your reporting and tax bill is correct.

How can an accountant help?

At TaxAssist Accountants we can help you identify:

• whether you must report the property sale to HMRC
• the deadline for submitting your CGT return
• any CGT reliefs available
• how much your gain or loss is
• how best to time sales of assets to help cash flow
• when your CGT is payable, and how to pay it
• how to include your property sale on your self-assessment tax return

How can TaxAssist help you?

TaxAssist Accountants are experienced, local accountants and can assist landlords with all tax aspects of buying, selling and letting property. Call 01494 778900 or contact our team at TaxAssist Accountants today to arrange a free, no obligation meeting.

Date published 26 Sep 2023 | Last updated 25 Oct 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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