It was announced in the Autumn Budget 2021 that HMRC will now require reporting and payment of Capital Gains Tax (CGT) within 60 days of the date of completion on the disposal of UK residential property. This measure extends the time limit by 30 days, providing taxpayers with twice as much time to report and pay their CGT.
The new rules come into effect immediately for disposals that completed on or after 27 October 2021.
Where a gain arises in relation to a mixed-use property, only the portion of the gain that is the residential property gain is to be reported and paid.
Application of the reporting and payment window
The 60 day deadline for reporting and payment of CGT on the sale of UK residential property applies to
- UK residents disposing of property that is or was a residential property during their ownership and on which chargeable gains arise;
- Non-UK residents disposing of any type of property (residential or commercial) in the UK, whether directly or indirectly owned; and
- For mixed-use property disposals, the payment window will apply only to the residential element of the property gain.
Download our factsheet below for further details on CGT reporting, including a guidance pathway to show where 60 day reporting is required.
Reporting Capital Gains on UK residential property disposals