What Tax is due when Selling Property?

Feb 15, 20232 min read

Selling Residential Property in the UK - CGT Return

If you sell "or dispose" of a property in the UK and capital gains tax is due, you will be required to submit a CGT Tax return to HMRC within 60 Days of sale.

Disposing includes:

- Selling it

- Giving it away as a gift

If you have sold Property in the UK on or after 6 April 2020?

If you have sold a property in the UK on or after the 6 April 2020, you must report and pay any capital gains tax due within:

- 60 days if the completion date was on or after 27 October 2021.

- 30 days of selling if the completion date was between 6 April 2020 and 26 October 2021.

This can be reported by completing a Capital Gains Tax return. We can take all the stress out of your CGT Return and complete for you ensuring you maximise your reliefs/allowances. If you require advice/guidance you can contact us direct or book a free 30 minute consultation here.

Capital Gains Tax Rates, Allowances and Deductions?

Capital gains tax is only due on the total amount of Profit/Gain that you have made on the property. For example if you buy a property for £200,000 and later sell this for £250,000, there will only be tax due on the £50,000 gain made.

There are a number of Tax Reliefs that we can help you maximise (PPR, Lettings Relief, etc). For instance if you have ever lived in the Property as your main home, we can help you maximise your Principal Private Residence (PPR) relief.

Capital Gains Tax Rates

Asset	Basic Rate	Higher Rate
Residential Property	18%	28%

Tax Free Allowance

Associated to	Allowance Amount
Personal	£12,300
Trusts	£6,125

Deducting costs

You can deduct costs of buying, selling or improving your property from your gain. For example estate agent, solicitor fees and any "Capital" home improvements (excluding normal maintenance costs, E.g. painting).

CGT on UK Property Account

If you do need to file a CGT Return, you will first need to create your Capital Gains Tax on UK Property Account. Link below:

HMRC - Create CGT on UK Property Account

You will then be provided with an Account Number (For Example, XYCGTP123456789). This will need to be passed to your Accountant along with your Postcode.