Selling residential property could be costly

Anyone selling residential property should be aware of the new tax rules.


Fines for not reporting property sales


It is reported HMRC have collected over £1.3M in fines for the last 6 months of 2020 in respect of Capital Gains Tax residential property returns not submitted within the filing deadline.  



Tax return and pay tax within 60 days of sale


Where a residential property is disposed of and a chargeable gain arises, the seller is required to

  • complete a Residential Property Return to HMRC within 60 days of completion and
  • pay over the Capital Gains Tax at the same time


The deadline was 30 days if the sale completed prior to 27 October 2021. 


We have been hearing numerous stories of clients falling foul of the new rules, including;

  • One client who sold their property for just over £100K could have saved around £2,400 taking simple steps prior to the sale had they spoken to their accountant in advance of the sale.
  • One couple are looking at penalties because they didn’t tell their accountant in time and a tax bill hadn’t been anticipated because the property had been gifted.



Keep warning clients


Are you telling your clients?


Please do keep telling your clients and prospects about the rules regarding the disposal of residential properties.


It is worth approaching other professionals such as conveyancing solicitors and ensure they are aware and refer clients to you or their own accountant.



ProActivTax members can use the Residential Property CGT Review


Within our Residential Property CGT review resource there are lots of flyers, news articles, emails, videos and more to help you raise awareness and make sure your clients and prospects know


There is also guidance, price resource, flyers and more to use with other professionals.


The marketing material will help encourage owners to contact you in advance of the disposal of any UK residential property. 


The resource will also help you

  • price your compliance and planning services in this area,
  • calculate the potential capital gains tax,
  • Identify if tax and a return is necessary,
  • Identify possible ways to reduce the tax bill, and
  • Give peace of mind to those where there is no CGT due.


There may be tax to pay, and a return required within 60 days (even if gifting the property).


Failure to pay the tax and submit the return could result in penalties.




Login first to our website before clicking on Residential Property CGT review resource.




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