Any person who disposes of UK residential property must report and pay their estimated Capital Gains Tax liability within 60 days of disposal. For those within self-assessment, the property disposal will also need to be reported on their self-assessment tax return.
There is no 60 day reporting requirement where no tax arises on disposal (for example when the property is transferred between spouses/civil partners or where the gain is fully covered by Capital Gains Tax exemptions such as the annual exemption or Principle Private Residence Relief).
HMRC has a specific online service for reporting these gains and individuals will need to login via their Government Gateway and register for a ‘Capital Gains Tax on UK Property’ account. The staff here at Cutter & Co have the knowledge and experience to help you with your Capital Gains computations as well advising on your reporting requirements.
Capital Gains Tax was introduced by Labour Chancellor James Callaghan in 1965, most gains were taxed at 30% until Conservative Chancellor Nigel Lawson aligned rates with those for income tax in 1988 (the higher rate was 40% at that time).
This continued until 2008 when Gordon Brown changed the rate to 18% before Alistair Darling introduced a 28% rate for individuals paying the higher rate of income tax. In 2022 there were 1.16 million residential UK property transactions. 137,000 of these transactions were reported using the Capital Gains Tax on UK Property online service generating £1.7billion of tax.
We can give you advice and information regarding CGT 60 Day Reporting requirements. To speak to one of us about this service please call 0121 550 8525 or email info@cutterandco.co.uk
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