Following recent concerns around how it works in certain circumstances, HMRC have now issued a set of Frequently Asked Questions (FAQs) for the Capital Gains Tax (CGT) online property reporting service.

Since April 2020 disposals of UK residential property have had to be reported and any CGT due paid within 30 days of completion using a new Online property reporting service. The main exception to this is where Private Residence Relief applies.

Since 1 August 2020 penalties have applied for late returns. There have been various problems highlighted since the requirement was introduced, prompting HMRC to issue this list of twenty-six FAQs which deal with a variety of issues such as:

Useful guides on this topic

CGT: Payment of tax
When is Capital Gains Tax (CGT) due? Can I pay in instalments? What are the penalties if I pay late? What are the new rules from April 2020?

CGT: Reporting, How to report CGT?
How do you report your capital gains? What return do you use?

CGT: deductible expenditure
What expenditure is allowable for Capital Gains Tax (CGT)? What about loan interest, early redemption fees etc?

Private Residence Relief
What is Private Residence relief (PRR)? What are the qualifying conditions? Can you claim relief on two homes? How do you claim PRR? Can you claim PRR if you develop your garden?

Business Asset Disposal Relief (Entrepreneurs' Relief): Disposal of a business
Entrepreneurs' Relief (ER) was renamed Business Asset Disposal Relief (BADR) by Finance Act 2020.  When does BADR apply? What is the rate of BADR? How to claim BADR. Case law on BADR.  

Non-resident CGT: UK property
Capital Gains Tax, non-residents and UK property.

External link

HMRC FAQs: UK Property Disposal Question and Answer document 12/07/2021 

Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.