If you are a landlord, second homeowner or a holiday homeowner and you sell your property at a gain, you have just 30 calendar days to inform HMRC and make a Capital Gains Tax (CGT) payment.
If you fail to meet this deadline you will be subject to a £100 fine which rises to £300 or 5% of any tax due (whichever is greater).
Your annual tax-free allowance of £12,300 is unaffected and you only pay CGT on profit above this.
CGT is due when you sell or dispose of the following at a profit:
- a property that you’ve not used as your main home
- a holiday home
- a property that you let out for people to live in
- a property that you have inherited and have not used as your main home.
If you dispose of an asset you jointly own with someone else, you must pay CGT on your share of the gain.
You will not need to make a report and make a payment within 30 days when:
- you are eligible for Private Residence Relief
- the sale was made to a spouse
- the gains are within your Annual Exempt Amount
- you sold the property for a loss.
Gains must be reported online to HMRC in your capital gains account.
If you have made, or about to make a gain on property that falls within the list above then contact us.