Selling a rental property? 🏠 Tax now due within 60 days!

Selling a rental property?

Capital Gains Tax (CGT) is now payable within 60 days of completing the sale of a residential rental property and is reportable via a standalone online CGT Return.

The simple takeaway - If you’re planning on selling a property – please let us know.

Background info: CGT standalone Returns were first introduced from 6 April 2020 with a 30-day deadline. This was extended to 60 days at the Autumn Budget held on 27 October 2021.

Details of note:

1. while the Return is due and payable within 60 days of completion, the taxable-date is still the date contracts are exchanged (unless completion is conditional per the contract).

2. The 60-day Return is not required if the taxpayer has already declared the sale on their usual SA Tax Return, in which case, the tax is payable by the usual 31 January deadline (not 60 days) (this is only possible if a property sale exchanges between 6 Feb - 5 Apr in any year and an SA Tax Return is submitted between 6 Apr - 4 Jun).

3. Likewise, the 60-day Return is not required if there is no Capital Gains Tax payable (e.g. the gain is covered by the CGT Annual Exemption).

Source info: https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start/report-pay-capital-gains-tax-uk-property

These rules a nicely summarised in HMRC's video

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