Capital Gains Tax 30-Day Rule
The Capital Gains Tax (CGT) reporting and payment date for UK residents that sell a residential property changed with effect from 6 April 2020. This change means that any CGT due on the sale of a residential property now needs to be reported and a payment on account of any CGT due made within 30 days of the completion of the transaction.
In practice, this change only applies to the sale of a residential property that does not qualify for Private Residence Relief (PRR). The PRR relief applies to qualifying residential property used wholly as a main family residence.
HMRC has listed the following types of property sales that are affected:
- a property that you have not used as your main home;
- a holiday home;
- a property which you let out for people to live in;
- a property that you have inherited and have not used as your main home.
There can be penalties and interest charged if CGT due on the sale of a UK property is not paid within 30 days of the sale.