Stay up-to-date with the latest business and accountancy news: Sign up for daily news alerts
TAX NEWS
Article
Published: 01 Mar 2023 Update History
Normally when an individual sells a UK residential property at a gain, they are required to submit a capital gains tax on property disposal (CGT PPD) return with 60 days of completion.
Non-UK resident individuals must submit a CGT PPD return whether the property is sold at a gain or a loss. The associated capital gains tax (CGT) must also be paid to HMRC by the end of the 60-day period (slightly longer in some cases where a paper return is submitted). Taxpayers within the self assessment (SA) regime will also need to report the disposal on their SA tax return following the end of the tax year.
However, where a sale takes place towards the end of the tax year (5 April), a SA tax return can be filed instead of the CGT PPD return in relation to that tax year. The SA tax return must be filed within 60 days of completion of the sale; it would require a quick turnaround following the end of the tax year. If this is achieved, a CGT PPD return does not need to be submitted for the property disposal. Note that it is the date of exchange, rather than the date of completion, that determines the tax year of the disposal.
An added bonus of submitting via SA tax return is that the CGT is payable by 31 January following the tax year, instead of the shorter 60-day period. This may offer a significant cash-flow advantage to taxpayers who are able to prepare and submit their SA tax returns within the 60-day window following completion.
Find more Tax Faculty information on disposing of UK residential property:
ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
ICAEW’s Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty’s free enewsletter (TAXwire) which provides weekly updates on developments in tax.
Stay up to date with the latest developments in tax by signing up to the Tax Faculty’s weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty’s technical managers on all the developments in tax policy and practice.
The Institute of Chartered Accountants in England and Wales, incorporated by Royal Charter RC000246 with registered office at Chartered Accountants’ Hall, Moorgate Place, London EC2R 6EA
Read out this code to the operator.
XXXXXX
Cancel
