Disposal of UK residential property – UK resident
If you make a disposal of UK residential property, it may be necessary to report the disposal to HMRC, within 60-days of the date of completion, and pay Capital Gains Tax (CGT), within the same timeframe.
Failure to meet this deadline will result in late filing penalties as well as possible late payment penalties, and/or interest.
If an individual files their CGT return after the deadline, the current late filing penalty regime is as follows, for disposals which took place on or after 27 October 2021:
- Initial late filing penalty – £100
- 3 months late – Daily penalty of £10 per day, up to 90 days (maximum £900)
- 6 months late – 5% of tax due, or £300 if greater
- 12 months late – 5% of tax due, or £300 if greater, unless the taxpayer is deemed to be deliberately withholding information that would enable HMRC to assess the tax due (penalty-based behaviour)
A penalty is based on behaviour when it’s:
- Deliberate and concealed withholding – 100% of tax due, or £300 if greater
- Deliberate but not concealed withholding– 70% of tax due, or £300 if greater
The current penalties for late payment of CGT are:
- 30 days late – 5% of tax due
- 6 months late – 5% of tax outstanding
- 12 months late – 5% of tax outstanding
Disposal of UK land & property – non-UK resident
If you make a disposal of UK land and property as non-UK resident, it will be necessary to report the disposal to HMRC within 60-days of the date of completion, as well as paying any CGT due, within the same timeframe.
The same penalty regime for late filing and payments, as laid out above, is also applicable to non-UK residents.
Need some guidance?
If you would like assistance with calculating and reporting the gain realised on the disposal of UK property and/or land, please get in touch. Our team will be happy to assist you…
