Residential properties – capital gains tax reporting after 5 April 2023

Date posted: 9th Jan 2023

Whilst the new tax year is a few months away, we felt it was a worthy time to remind taxpayers that the capital gains tax allowance for 2023/24 is decreasing to £6,000 from the current level of £12,300.

This means that the tax bill on the sale of a property on 6 April 2023 could be over £1,700 more than a day earlier on 5 April 2023. In reality the last date for the sale will be Friday 3 April 2023. So potentially haggling over a last minute £500 drop in the price may cost you in the long run.

The date of disposal for capital gains tax purposes is the date that the contract becomes unconditional – in most cases this can be the date that contracts are exchanged rather than necessarily the date of completion. So as long as exchange takes place on 3 April 2023, with no conditions attached, the gain should fall into the 2022/23 tax year.

In most cases, the capital gains tax liability will need to be paid and also declared to HMRC within sixty days via a stand-alone capital gains tax return. However, where the gain is subsequently reported on the self assessment tax return that is submitted within 60 days of disposal, then there is no need to also prepare a stand alone CGT return. So if a disposal took place on 31 March 2023, then as long as your self assessment tax return is submitted by late May 2023, then you can avoid the necessity to complete the stand alone CGT return. You will still need to pay the actual capital gains tax liability within sixty days though!

If you have any queries regarding the capital gains tax reporting of second homes, holiday lets or buy to let properties, please get in touch.


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