Date posted: 16th Dec 2021
As a reminder, the sale of a residential property that produces a tax charge (e.g. buy to let property sale, second home, inherited property etc) needs to be reported to HMRC by a separate capital gains tax return within a relatively short time frame, following the sale of the property. If the return is not completed, then penalties are likely to be imposed by HMRC.
In addition, any capital gains tax due, also needs to be paid within the same timeframe.
Until the 2021 Budget, the time frame was 30 days of completion. However, that deadline was extended to 60 days from completion, for sales that complete after 27 October 2021. This is still a relatively short time frame and if you are planning to sell your property, you do need to prepare in advance for the capital gains tax calculations.
Please remember that if you normally complete a Self Assessment Tax Return, you will be required to declare the sale on that Return too, although you will of course be given a credit for any tax already paid.
If you need assistance with capital gains tax reporting, contact us here