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Capital Gains Tax 30-day returns rule – Don’t forget to file on time

Since April 2020, the date on which Capital Gains Tax (CGT) must be paid on gains arising on the sale of UK residential property has changed. Taxpayers now have only 30 days from completion to file a CGT return and make an advance payment towards their tax bill where CGT is due.

Most people will not pay CGT on the sale of their main home thanks to tax relief, but some larger properties and second homes do.

In particular, this shorter period for filing Capital Gains Tax returns affects property investors and landlords.


Where the gain is fully covered by a CGT relief, brought forward losses or the annual exemption, there is no requirement to file a CGT on UK property return or pay CGT on account.

The disposal of residential property which results in a capital loss does not need to be reported to HMRC within 30 days of completion.

UK residents do not need to report transactions where no tax is due because of the availability of reliefs.

However, non-UK residents will need to report transactions even if no tax is due, including on both UK residential and commercial property.

Penalties for late filing

If a return is not filed within 30 days of the completion date, an automatic late filing penalty of £100 will apply. If the return is more than three months late, daily penalties can apply and then fixed £300 penalties at six months and nine months.

Underpayments and late payments of notional CGT will attract interest charges. Interest will be charged on CGT which is not paid within the 30-day deadline.

How we can help

We can provide you with a quick, hassle-free CGT returns service. Enabling a swift turnaround to fully meet your compliance requirements.

If you are thinking of selling a property speak to us today before your sale exchanges to make sure you are compliant.


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