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CAPITAL GAINS TAX ON BUY TO LET PROPERTY

  • Practice Licence
  • 6 posts
  • # 119741

Hi,

With the new 30 days rule on CGT, if my client made a £5000 gain on his BTL property (well below the current threshold) does my client still need to set up an online government gateway account and report this to HMRC or does it just go on their relevant self assessment?

  • Member
  • Practice Licence
  • 10 posts
  • # 119743

 Correct .With the new rules your client needs to report the sale of the buy to let property and the gains made within 30 days.

 

Check: tax.service.gov.uk: Report and pay Capital Gains Tax on UK property.

Please note that even if you make a loss on disposal you still need to notify HMRC within 30 days.

 

When you fill in the self assessment then you need to fill in the section for Capital Gains Tax. 

 

 

 

  • Practice Licence
  • 6 posts
  • # 119754

Sorry but I don't think you are correct there, I have since spent time researching and if the following apply then you DO NOT need to submit the 30 day return:

You will not be required to make a report and make a payment when:

• A legally-binding contract for the sale was made before 6 April 2020
• You qualify for full private residence relief
• The sale/disposal was to a spouse/civil partner
The gain, including any other chargeable residential property gains in the same tax year, is within your tax-free allowance (£12,300 in 2020/21)
• You sold the property for a loss
• The property is outside the UK

  • Member
  • Practice Licence
  • 10 posts
  • # 119759

In the initial query, you did not mention that the exchange was done before 6th April 2020.

 

For UK property disposals made from 6th April 2020, you have 30 days after the property's completion date to report and pay any Capital Gains Tax due on your UK property disposals.

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