HM Revenue & Customs (HMRC) is reminding self-assessment taxpayers of key Capital Gains Tax (CGT) changes that they need to be aware of before 31 January 2021.
Since April 2020 there have important been changes to how CGT is declared and paid.
UK residents that sell a residential property in the UK that is not their main property and make a capital gain with tax to pay now have just 30 days after completion to inform HMRC via the online portal and pay the CGT due.
Non-UK residents that sell UK property and land are also being advised to use the online HMRC service, even if there is no gain.
The changes affect property developers or landlords that may be selling part of their property portfolio, or UK residents selling a residential property that is not their main residence.
HMRC is now reminding individuals that if they sold a second home during the 2019-20 tax year, then they must declare it on their Self-Assessment tax return by 31 January 2021.
Individuals must inform HMRC of any CGT liabilities on their Self-Assessment tax return, but any payments already made will not count towards their annual tax return bill.
Karl Khan, Interim Director of Customer Services at HMRC, said: “The 2019-20 tax year is the last year UK residents will be required to pay the Capital Gains Tax for the sale of properties as part of the Self-Assessment process and we want to make sure they are aware of the new requirements.”
For help and advice on matters relating to Capital Gains Tax and Self-Assessment tax returns, contact our expert team today.