Changes to Capital Gains Tax

Changes to capital gains tax:

If you sold your property after 6 April 2020 you must report and pay Capital Gains Tax within 30 days of selling property in the UK. You may have to pay interest and a penalty if you do not report gains on property within the time limit.

You can report Capital Gains Tax you need to pay:

  • using the Capital Gains Tax on UK property service within 30 days of selling UK property
  • straight away using the ‘real time’ Capital Gains Tax service
  • annually in a Self Assessment tax return

If you have to send a Self Assessment return for another reason, you must include capital gains on your return, even if you’ve already reported and paid them.

Before you report

You’ll need:

  • calculations for each capital gain or loss you report
  • information from your records about the costs and what you received (the ‘proceeds’) for each asset
  • any other relevant details, such as any reliefs you’re entitled to

Report gains and pay straight away

If you’re a UK resident you can use the ‘real time’ Capital Gains Tax service to report any gains that are not from selling UK residential property.

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 service you’ll need to upload PDF or JPG files showing how your capital gains and Capital Gains Tax were calculated.

When to report

You can use the ‘real-time’ service as soon as you’ve calculated your gains and the tax you owe. You do not need to wait until the end of the tax year.

You must report by 31 December after the tax year when you had the gains.

The tax year runs from 6 April to 5 April the following year.

After you’ve reported your gains, HMRC will send you a letter or email giving you a payment reference number and telling you ways to pay.

Do not pay your Capital Gains Tax bill until you’ve received your payment reference number.

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.

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.

If you’re not resident in the UK

If you’re a non-resident and you’ve sold property or land in the UK, tell HM Revenue and Customs (HMRC) within 30 days, even if you have no tax to pay.



Need more information?

Do you need more guidance on the changes to capital gains tax? We offer a wide range of services and are here to help you. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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