You may have to pay capital gains tax if you make a profit when you sell property that isn’t your main home. For example, inherited property, land, or buy-to-let property.

In the Autumn 2021 Budget, the Chancellor extended the deadline for UK residents to report and pay capital gains tax (CGT) on UK residential property from 30 days to 60 days.

The change means you must report and pay the tax within 60 days of selling your property, if the completion date was on or after 27 October 2021. But if the completion date was between 6 April 2020 and 26 October 2021, you must report and pay the CGT within 30 days of the sale.

The rules apply to all UK residents who sell a residential property in the UK that isn’t their main home and make a ‘gain’ with tax to pay.

Get ready for 60-day reporting

At Churchill Taxation, we can help you report and pay capital gains tax on UK property.

But first there are a few steps you need to take.

So, to help you out, we’ve put together a handy guide…

Step-by-step guide to preparing for CGT reporting

Step 1 – register for a Government Gateway account

You need to register yourself for a Government Gateway account (unless you already have one). You can do this online or by phone with HMRC.

Step 2 – visit the Government’s ‘report and pay capital gains tax’ page

Once you’ve set up your Government Gateway account, follow this link: https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

Then scroll down the page and click on the ‘sign in or create a capital gains tax on UK property account’ link.

Step 3 – prepare requested information

You’ll need to get the following information ready:

  • Property address and postcode
  • Date you acquired the property
  • Date you exchanged contracts when you were selling or disposing of the property
  • Date you stopped being the property’s owner (completion date)
  • Value of the property when you acquired it
  • Value of the property when you sold or disposed of it
  • Costs of buying, selling or making improvements to the property
  • Details of any tax reliefs, allowances or exemptions you’re entitled to claim
  • Property type, if you’re a non-resident
Step 4 – click on the ‘start’ button

Stay on the ‘sign in or create a capital gains tax on UK property account’ web page and scroll down until you reach the ‘start’ button. Then click the button.

Step 5 – sign in using Government Gateway

After clicking the ‘start’ button, you can set up a capital gains tax account using your Government Gateway information.

It should generate a CGT account number, which our team at Churchill Taxation will need to gain authorisation to complete the forms on your behalf.

Step 6 – receive a CGT account number

HMRC will email you a CGT account number, which you can forward to us, as your tax agent. We can then authorise ourselves to complete the forms for you.

Step 7 – give us your figures

Send us your figures so we can calculate the gain. We’ll need numbers for proceeds, selling and purchase costs (buying the property and any associated costs), and enhancement expenditure.

And if you can confirm your estimated income levels for the tax year, we can use this to work out the tax due.

Step 8 – submit forms

We’ll complete and submit the forms for you and tell you how to pay the tax.

Note: we may need further information from you during the process but we’ll let you know if we do. And please let us know if you experience any problems while carrying out the above steps.

Making tax less of a headache

Our experienced team are here to help you manage your tax payments. We specialise in plain-English tax advice for people and businesses in the West Midlands and across the UK.

Get in touch today to find out how we can help ensure you don’t get tripped up by the Government’s CGT reporting and paying rules. Call us on 07813 434195 or email: stephanie.churchill@churchilltaxation.co.uk

Steph Churchill

Stephanie Churchill

Managing director & co-owner of Churchill Taxation