New rules were introduced in April 2020 requiring that individuals who sell residential property on which CGT is payable must report and pay the gain to HMRC within 30 days of completion of the sale of the property.

We are continuing to assist clients in meeting their reporting obligations and encourage those seeking to sell their properties to advise as soon as possible so that they can be registered with HMRC and the potential CGT liabilities calculated.

It should be noted:

  • The individual needs to create a relevant government account to then appoint our firm to assist as agent.
  • The reporting regime only applies to residential property, not commercial.
  • It does not apply to UK companies.
  • If no CGT is payable, then no reporting is required. Therefore if the gain is fully covered by main residence relief, then no pay and file is needed.
  • It is most likely to affect landlords selling rented residential houses and flats, or to individuals with second homes.

Separate reporting is required for each disposal and each individual.

If you would like any assistance with the new Residential Property Pay and File Regime – please get in touch with our team.

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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