Non Residents selling UK property – Reporting Requirements

If you are non-UK resident and own UK residential property it is important to be aware of the new disclosure requirements for property disposals.

With effect from 6 April 2015 any non-resident who sells a UK residential property must notify HMRC of the property sale within 30 days of conveyance. The disposal must be reported online even if there is no capital gains tax to pay or a loss has been incurred. It does not matter if the non-resident is already registered for self-assessment or corporation tax.

The non-resident may also have to pay any capital gains tax due within 30 days of the sale of the property.

If the 30 day deadline is missed there is an automatic initial penalty of £100 and interest will be charged on the late payment of any tax due.

It appears that these changes are not quite as well known as we previously had thought. We have recently had to complete the HMRC online forms for a number of non-residents who have sold UK residential properties, but had not been made aware by their solicitor or estate agent that the sale had to be reported to HMRC within 30 days. Unfortunately all of these clients incurred late notification penalties and there was nothing that we could do to get the penalties reduced or cancelled.

Please contact us if you need help to report any UK residential property sales to HMRC.