Important Changes to Capital Gains Tax – Property Disposals

Posted: Sep 14, 2020
Liz Gallagher

Important Changes to Capital Gains Tax – Property Disposals

From 6 April 2020, where an individual or trustee disposes of a residential property and makes a capital gain on which tax is payable, then a return must be filed with HMRC within 30 days of completion. This return must include an estimate of the capital gain and the resulting tax is payable at the same time.

Capital Gains Tax Property

This is a dramatic change to the previous regime which required individuals and trustees to include these gains on their annual tax return for the year in which the disposal took place.

This is not necessarily a service which will be offered by your conveyancing solicitor and therefore it is vital that you let us know as soon as possible when you sell a residential property (other than your home) due to the very short timeframe there is to report the disposal to HMRC.   In addition, we need to have in place a separate authority to enable HURST as your agents to file the return on your behalf.


Where a return is not filed within 30 days of the completion date an automatic late filing penalty of £100 will apply.

You should also bear in mind that HMRC have access to land registry records and are increasingly using this information to ensure that taxpayers comply with the legislation.

Need Capital Gains Tax Advice?

Manchester accountants and tax advisors HURST are experts in capital gains tax. You can get in touch using the form below: