Until April 2020 UK taxpayers were only required to declare Capital Gains Tax (CGT) on an annual self-assessment tax return. Since then, taxpayers disposing of a UK residential property are required to calculate, report and pay any applicable CGT within 30 days of completion of the sale.

CGT can still be reported via an annual self-assessment tax return as long as it falls within the new 30-day period and individuals are still required to include any CGT gains in their annual return if they send one. 

What is Capital Gains Tax? 

CGT is a tax on profit made when selling an asset that has been held for more than a year. The amount owed is calculated based on the increase in value of the sale price compared to the purchase price. There are two different rates of CGT - one for property and one for other assets. 

When is Capital Gains Tax payable?

CGT is not usually payable on someone’s main residential home unless it is partly used as a business premises, or if a part of the property has been sub-let to more than one lodger. CGT is usually payable on the sale of second homes and buy-to-let property unless they were someone’s main home within the 18 months prior to selling. 

How to report and pay CGT?
The report must be made online via the UK property reporting 30-day online service.1 Individuals can choose to report the disposal themselves or authorise a tax adviser to report the disposal on their behalf, but penalties, together with any interested on any unpaid tax, will apply in the event they miss the new deadline.