Which Property Transactions?
You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your main home. For example, buy-to-let properties, land or inherited property.
In most cases you do not need to pay the tax when you sell your main home, as these transactions are covered by the Principal Private Residence (PPR) exemption. If the property is not covered, in full, by the PPR exemption, then the transaction, and any gains, must be reported to HMRC.
When Should You Report?
If you sold your property after 6 April 2020 you must report and pay any Capital Gains Tax due within 30 days of selling the property. You may have to pay interest and a penalty if you do not report gains on property within this time limit.
Due to coronavirus (Covid-19) HMRC did not issue late penalties to any transactions completed between 6 April and 30 June 2020, provided the gain was reported and any tax due paid by 31 July 2020. Anyone who completes the sale of a property from 1 July 2020 onwards has 30 calendar days to report and pay the tax due.
Transactions completed from 1 July 2020 will receive a late filing penalty if they are not reported within 30 calendar days. Interest will be charged if the tax remains unpaid after 30 days for all transactions from 6 April 2020.
How Do You Report?
You’ll need a Government Gateway user ID and password. If you do not have a user ID, you can create one when you report and pay. When you use the ‘real time’ service you’ll need to upload PDF or JPG files showing how your capital gains and Capital Gains Tax were calculated.
If you have to send a Self Assessment return for any other reason, you must include the capital gains on your return, even though you’ve already reported and paid them.
If you sold the property before 6 April 2020, report the gain using the ‘real time’ Capital Gains Tax service or in your next Self Assessment tax return.