As of the 6th April 2020, a new online system for paying and declaring CGT was introduced, which would allow this to be done within 30 days of completion for sales of residential properties.

What Does CGT Online Apply To?

CGT online applies to all sales of UK homes where the exchange and completion occurred after 5th April 2020. Sellers who are not tax-resident in the UK must report all UK property sales within 30 days. However, there are exceptions to this rule, and this includes:

  • The deal is loss-making
  • The gain is covered by your annual exemption (£12,300 for 2020-21)

If the CGT is not reported and paid within the 30-day bracket, then you will receive automatic late-filing penalties which start from £100 and can reach as much as £1,300 if the delay lengthens. However, it is important to note that HMRC has not applied a penalty for sales completed before 1st July 2020, which were reported by 31st July 2020. Transactions completed on or after 1st July 2020, on the other hand, must still be reported within 30 days through your online ‘CGT on UK property account’.

At Digital Tax Matters, we are able to do this report for you; however, you will need to set up the account first using your government gateway ID and passwords. You will then have to authorise us to report transactions through the account. We recommend letting us know as soon as you agree to sell a property as it is unlikely that your conveyancing solicitor will deal with the CGT reporting. This will ensure that we have plenty of time to calculate the gain before the 30-day deadline.