HM Insights

HMRC extends online reporting of property disposals which lead to Capital Gains Tax liability

In the last few days HMRC have advised that they have updated their online system to allow reports of second and subsequent property disposals to be made online.

As discussed in our previous blog – The new CGT 30 day reporting and payment regime from 6 April 2020 all disposals of UK residential property must be reported and paid within 30 days of completion.

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On 19 August 2020 HMRC upgraded the system to allow gains on second and subsequent disposals to be reported online. Previously the system could only be used for the first disposal in any tax year and subsequent disposals had to be reported on a paper return.

The system now also allows personal representatives and capacitors to report gains. If a personal representative has disposed of UK residential property which gives rise to a Capital Gains Tax liability they must report and pay the tax due within 30 days of the completion date.

Estates do not have to have registered via the Trust Registration Service to be able to use the new Capital Gains Tax payment on property disposals service. However, if the personal representative already has a Unique Taxpayer Reference (UTR) for the estate, this can be used when filing on the Capital Gains Tax payment on property disposals Service.

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Useful links

CORONAVIRUS LEGAL ADVICE

PERSONAL TAXATION ADVICE