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Residential Property Sales: 60-Day Deadline for CGT

By April 5, 2023No Comments

Properties sold on or after October 27 2021, that aren’t a main UK residence, must now pay capital gains tax within 60 days of completion.

The extension was put in place after a previous change in 2020 which saw a deadline of 30 days after the sale of the property. This extension will allow more time for individuals to provide accurate figures and in more complex cases engage with advisors. 

What is changing and who does it affect?

HMRC is giving taxpayers more time to pay tax from the disposal of private residences. They’re still separating capital gains tax from the Self Assessment process to make it a standalone payment, but under recommendations by the Office of Tax Simplification have agreed to extend the payment window by a further 30 days:

This measure extends from 30 days to 60 days the time limit for making Capital Gains Tax (CGT) returns and associated payments on account when disposing of UK land and property.

HMRC website 

So from now you’ll need to calculate, file and pay capital gains tax within 60 days of completion when you sell a property that is not your main residence.

This includes buy-to-let investors, property owners with extensive portfolios, and those who have inherited a property as a secondary asset. 

Selling an inherited property can be a complicated and time-consuming procedure that typically involves working with an estate agent and a solicitor. However, neither of them can provide advice on your CGT liability. As a result, it is advisable to work with an accountant to calculate your capital gains tax to ensure that this is filed correctly. 

Where to find out more

It’s important to seek professional help when selling a second residential property to help file your capital gains tax within the 60-day window. Further information from HMRC can be found here.

Ultimately our advice is to get help from an experienced property accountant such as Warr & Co. Our fees are £150 + VAT for a UK resident submission and £200 + VAT for a none UK resident disclosure, why not get in touch today?


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