30 day return requirement for property disposals
We are still seeing a number of cases where people making property disposals have been unaware of the requirement to file a special tax return and pay the tax due within 30 days of completion.
If this deadline is missed, HMRC will charge penalties and interest.
The rules are as follows:
For UK residents
A 30 day return is necessary where a residential property has been sold giving rise to a capital gains tax liability.
This could be, for example, a second home, a rental property, or an inherited property that has increased in value during the probate period.
The process requires the seller to register with HMRC and create a “capital gains tax on UK property” account.
For non-UK residents
Similar rules apply to non residents, who must complete a 30 day return for all property disposals – not just residential property – irrespective of whether there is a tax liability.
If you may be affected by these rules, or are a property or legal professional acting for people who may be so affected, please do bear them in mind.