We have heard a few reports recently that clients who have sold property which was not their main residence, have not been made aware of Capital Gains Tax obligations by their solicitor.
Since 6 April 2020, HMRC has required that UK residents who dispose of a UK property with a gain (which was not their main residence) need to pay Capital Gains Tax within 30-days of the completion of the transaction.
Exceptions
There are a number of exceptions, whereby the UK property disposal does not need to be reported within the 30-day timeframe, however these are unique situations and the majority of individuals disposing of a UK property do fall under the 30-day reporting obligation.
Naturally, this 30-day reporting window is likely to make it difficult for some individuals to provide exact figures for the Capital Gains report. HMRC has accepted this and the legislation allows certain estimates and assumptions to be made with amendments to be made post submission of the report.
Non-UK residents
Similarly, non-UK residents who sell a UK property also have to report the sale of the property within the same 30-day period, even if there’s no tax to pay.
Next steps
If you would like clarification on the Capital Gains Tax obligations, or any other advice, please get in touch and our knowledgeable tax team will be happy to help you.