Capital Gains Tax Reporting (CGT) for Residential Properties

Contrary to popular belief, the profit you make when you sell your home, or a former home, is not automatically exempt from CGT.

This tax exemption applies to gains that relate to periods in which you lived in the property as your main home. However, it can be extended to certain periods when you were not living in that property.

For example, the last nine months of ownership are exempt from tax where you have previously occupied the property as your home. This is extended to 36 months where the owner or their spouse is disabled or has moved into residential care.

Where you sell or transfer any UK residential property, any capital gain producing a CGT liability needs to be reported, and the CGT paid to HMRC, within 60 days of completion of the disposal.

The gain must be reported through your online UK Property Account and also on your Self-Assessment Tax Return (SATR) for the year, unless you would otherwise not need to file a SATR. We can help you with this reporting.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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