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HMRC extends CGT 30-day reporting functionality

20 August 2020: Capital gains on UK residential property need to be reported within 30 days of completion. HMRC has now updated its system to allow reports of second and subsequent disposals to be made online.

A new requirement to report and pay capital gains tax (CGT) on disposals of UK residential property within 30 days of completion applies to disposals made (which usually means the date of exchange) by UK resident taxpayers on or after 6 April 2020.

UK residents are required to report gains on UK residential property only where tax is due. This can include a deemed disposal, a gift of a residential property or a disposal of a principle private residence that does not fully qualify for relief. The requirements for non-residents are wider and apply even where no tax is due.

The HMRC system for reporting these gains is still in development. On 19 August 2020 HMRC upgraded the system to allow gains on second and subsequent disposals to be reported online.

Previously the system could only be used for the first disposal in any tax year and subsequent disposals had to be reported on a paper return.

The system now also allows capacitors (those holding power of attorney) and personal representatives to report gains. The process for capacitors and personal representatives should not be used by agents reporting on behalf of clients.

ICAEW’s Tax Faculty understands that HMRC will now develop the functionality to allow for amendments to returns that have been filed.

HMRC has confirmed that it has introduced a fix for an issue with verification that was preventing some taxpayers (particularly overseas taxpayers) from using the system.