Residential Property – 30 Day Capital Gains Tax Returns

New rules requiring taxpayers to submit Capital Gains Tax (CGT) returns to report the sale of residential properties came into force on 6 April 2020.  These rules require taxpayers selling such properties to file a CGT Tax Return with HMRC and pay the tax due within 30 days of completion.  This will particularly affect those selling buy-to-lets, other rental accommodation and second homes.

No CGT return is required where no CGT is payable on the sale – for example where the gain is covered by losses realised in the past or a relief applies in full (in particular main residence relief, which applies to exempt the gain that arises in periods that a property is your main home.)

It may also still be necessary to include the gain on any self-assessment tax return prepared for the year.  This will be essential where circumstances mean that that the 30 day CGT payment made was too high or too low, which can often be the case, not least as the rate of CGT may be uncertain at the time the CGT return is prepared  – this can be 18% or 28% depending on income levels for the tax year.

Please let us know if you have sold or are planning to sell any residential property – we will be happy to provide advice and deal with the relevant tax returns required.  HMRC are able to apply significant penalties for late or incorrect returns and so it is vital to ensure that this is dealt with correctly. Contact us today at or call 0131 558 5800.