CG-APP18-110 - Part 1 Accessing the Capital Gains Tax (CGT) on UK Property Account: Before you start
1.1 Before you start
The reporting requirements for non-UK residents and residents are different.
Before using this service, the person who made the disposal must determine what they believe their residence status to be for the tax year of the disposal.
Further information on determining residence status can be found in RDRM11000.
The detailed rules on the disposals for which a return should be filed are within Schedule 2 Finance Act 2019.
In broad terms the filing requirements for non-residents are greater than for UK residents.
The rules in Schedule 2 also include special provisions relating to certain Collective Investment Schemes and grant of options.
1.11 UK residents
From 6 April 2020, UK residents, who make a disposal of UK residential property must use the CGT on UK Property Account to report and pay to HMRC any CGT arising from the disposal:
- Within 30 days of disposing of the property, if the completion date was between 6 April 2020 and 26 October 2021.
- Within 60 days of disposing of the property if the completion date was on or after 27 October 2021.
There is no need to report any disposal where there is no CGT liability (although users can report such disposals voluntarily). There may be no liability for example if:
- Private Residence Relief applies in full, see CG64200c
- The gain is covered by the Annual Exemption, see CG18000p
- The gain is covered by brought forward losses or current year losses realised prior to completion of the disposal, see part 2.5.1 of this guidance, and CG15800p for further CG guidance on losses.
- A CGT Relief applies which reduces the full gain to nil, see part 2.4.4 of this guidance and CG60201c
1.12 Non-UK residents
Non-UK residents must report all disposals of UK property to HMRC, even if there is no tax to pay or have made a loss. This includes any disposal of residential or non-residential UK land and indirect disposals of UK property. The relevant legislation can be found in schedule 2 of the Finance Act 2019. Further details on non-UK resident disposals can be found in CG73920P further information regarding disposal made by Collective Investment Vehicles can be found in CG73995P.
1.13 Paper returns
Paper returns should be made by post only in the following circumstances, where the person reporting the disposal is:
- Digitally excluded or unable to pass HMRC’s online verification process
- An agent who has been engaged only to deal with a return
- A personal representative who wants a different agent to deal with the deceased estate to the one who deals with their individual tax affairs
- A personal representative who wants to amend a return which has already been sent online
- A Capacitor (such as Power of Attorney) who wants an agent to file the UK property return
- A Capacitor who wants to amend a return which has already been sent online
- A corporate trustee
- A non-resident trustee who needs to report the disposal of UK property or land but doesn’t have any non-resident Capital Gains Tax liability to pay and does not need to register the trust on the Trust Registration Service
- A person that has already submitted a Self Assessment return prior to the UK property return.
Paper returns may be generated for printing by completing the interactive form at https://www.gov.uk/government/publications/report-capital-gains-tax-on-uk-property or requested by contacting HMRC.
Changes or amendments to a previously submitted paper return must be made by using another paper return.
1.14 Information required
The following information is required to make a return:
- Property address and postcode of the property being disposed of
- Date you acquired the property
- Date contracts were exchanged for the disposal of the property
- The completion date (conveyancing date)
- Value of the property when it was acquired
- Value of the property when it was disposed of
- Costs of buying, selling, or making improvements to the property see CG15180
- Details of any tax reliefs, allowances, or exemptions available
- Property type, for non-residents. (such as residential, non-residential, mixed use or indirect disposal)
Further guidance regarding the acquisition details can be found in CG-APP18-240.