Changes to Capital Gains Tax & Property

14 May 2020

Important changes for Capital Gains Tax on UK Residential Property

Now that estate agents are able to open the property market will hopefully start moving again. There has been an important change in the HMRC filing of Capital Gains Tax regarding UK residential property gains. If you are selling or thinking of selling a second home or a property that is not your main residence then please take note.

What are the changes?

From 6 April 2020 there has been a change to the deadlines for filing and paying Capital Gains Tax (CGT) arising on the disposal of an interest in UK residential property. For any sales completed on or after 6 April 2020 you are now required to disclose the gain made to HMRC and pay any tax due on this within 30 days of completion.

This is a drastic reduction in time-frame where previously an individual had until 31 January following the end of a tax year to disclose any gains made and pay the tax.

The changes apply to UK and Non-UK Residents on the sale of any interest in UK Residential property. The changes do not cover non-residential property or a residential property that was the sellers only or main residence throughout its ownership. HMRC will issue penalties for any returns submitted late and interest will accrue if the tax due is paid late.

To allow some time to adjust to the new rules, HMRC will not issue any penalties for any late submissions due on or before 31 July 2020. With these above changes in rules in mind, it is really important that you inform your accountant as soon as possible should you dispose of an interest in UK Residential Property. That the appropriate reporting can be done on your behalf and avoid any late filing penalties.

How can Haines Watts help?

If you are thinking of selling a residential property and you have more than one then please get in touch. In order to meet the 30 day deadline for filing and paying tax you need to take action immediately. 

Please get in touch when you are sure you have sold your property even if no money has changed hands.

We can prepare the necessary paperwork ready to file so you can report and pay any tax due avoiding penalties. To find out more about how Haines Watts can help you with your tax affairs visit our web page here. You can contact our tax team on 01379 640555 or email We are here to help.  


Matthew Neale

Regional Managing Director