Acquisition history
Purchase consideration, legal costs and ownership are established from the original records.
Selling a rental property, second home or former main residence can create an immediate reporting deadline as well as a Capital Gains Tax calculation. The gain needs to be reconstructed properly before the 60-day property return is submitted.
Where possible, we prefer to review the sale before completion. That gives time to find historic purchase records, identify qualifying improvement expenditure and establish the occupation history before the reporting clock starts.
If completion has already taken place, include the completion date.
Prefer to call? 0800 135 7323
A property gain is more than sale proceeds minus purchase price. The ownership history, acquisition costs, improvement expenditure, reliefs and capital losses can all change the result.
The property return can require prompt filing, but the computation still needs evidence. Historic costs and reliefs should be reconstructed before the estimated tax is submitted.
The property return and any later Self Assessment reporting should tell the same story.
Purchase consideration, legal costs and ownership are established from the original records.
Completion statements and qualifying sale costs are reconciled.
Capital enhancement expenditure is reviewed separately from routine repairs.
Where relevant, the periods of occupation as a main residence are established for relief calculations.
Relevant losses and the annual exempt amount are considered when calculating the taxable gain.
The disposal is reported through the appropriate UK property service where required.
Completion date, residence status and reporting requirement are established first.
Acquisition, sale and qualifying capital expenditure are reconstructed.
Occupation history, losses and other relevant CGT provisions are considered.
The calculation is provided for approval before the required property return is filed.
For relevant UK residential property disposals, reporting and payment on account can be due within 60 days of completion. The taxpayer's full income and gains for the year may not yet be known, so the annual return can still be relevant later.
Non-residents have wider UK-property reporting rules. Residence status should therefore be checked before assuming the reporting requirement is identical to a UK-resident disposal.
Official guidance on reporting and paying Capital Gains Tax following relevant UK property disposals.
Reporting guidance ↗Current individual rates and the interaction with the basic-rate band.
CGT rates ↗A UK-resident individual can need to report and pay CGT within 60 days where tax is due on a UK residential property disposal. The exact requirement should be checked from the facts.
Qualifying capital enhancement expenditure can be relevant, but ordinary repairs and amounts already relieved elsewhere should not simply be added to the CGT base cost.
It may. Private Residence Relief depends on the actual ownership and occupation history.
The position should be corrected promptly. Late filing and payment can create penalties and interest.
Non-residents have specific UK land and property reporting rules and can need to report even where the final tax liability is nil.
Depending on the circumstances, the disposal may also need to be reflected in the annual return. The annual figures should remain consistent with the property return.