If you sell a UK residential property, then you must report any capital gain (if any) and pay any tax on this gain to HMRC within 60 days of the completion date. There may be interest and a penalty if you fail to report and pay this on time.

Process

1. Notify HMRC of the sale by setting up an account after which you will be provided with a 14 digit reference number starting with “X”. You will need an account and reference number for each individual reporting a gain so if you own the property jointly then you will both need to complete this process: www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

2. Calculate the capital gain and apply any eligible reliefs (e.g. PPR relief)

3. Complete the online forms within 60 days (you will need to estimate the tax rates based on your estimated income for the year)

4. Pay the Capital Gains Tax (CGT) due within the 60 days

5. After the end of the tax year, this gain will need to be added to your tax return where any under/over payments of CGT are resolved.

Our Service

1. We can calculate the capital gain for you by taking into account all allowable expenditure as well as any possible reliefs that may be available: £300+VAT

2. We can complete the online forms and calculate your estimated CGT based on your other taxable income: £100+VAT per online form

3. We will add the gain to the tax return and true up any tax due- this would be quoted for as part of our normal tax return service

If you would like us to help, we require:

1. The 14 digit reference number for all those who are submitting a form (see above) - we will then request agent authorisation which you will need to approve.

2. Sales completion statement along with any other costs (legal fees, etc)

3. Purchase completion statement along with any other costs (legal fees, searches, stamp duty)

4. Details of any significant improvements you have made to the property (extensions/renovations, lease extensions) - general maintenance or redecoration/replacing bathrooms etc are not included but we can always answer any questions on this separately.

5. A timeline of the property from the purchase date to the sale date (lived in by you/empty/rented out)

6. Estimated income levels for those concerned in the tax year in which the property is sold (e.g. if the property completes on 1st January 2025 this falls into the 2024/25 tax year which runs from 6th to 5th April each year)