Taxpayers who dispose of UK residential property are required to submit a capital gains tax on UK property (CGT PPD) return. They then need to pay the associated CGT liability within 60 days of completion.  

This may cause issues with calculating CGT liability, as it is affected by the individual’s income for the tax year and the availability of reliefs. These aspects may not be clear at the time of submission, unless the disposal falls close to the end of the tax year. 

For some taxpayers, this means that an estimate of the CGT is made on a CGT PPD return. There may be an overpayment of CGT by individuals who had less income than expected, or who were able to make use of reliefs.  

Some taxpayers may also need to submit a self assessment tax return for the affected tax year. For 2021/22 tax returns, an overpayment of CGT should automatically be offset against other self assessment charges. Where a repayment is due following this offset, the individual or agent will have to contact HMRC by telephone on 0300 200 3300 to request it. There is no need to amend the submitted CGT PPD return. 

Some agents have reported that they have been advised to amend the CGT PPD return, following the submission of a self assessment return, to request a repayment. However, this contradicts HMRC’s published guidance.  

Alternatively, where no self assessment tax return has been submitted, an individual can finalise their CGT position by making an amendment to the CGT PPD return. This should be done by accessing the online CGT UK property account, or by submitting a paper return for digitally excluded taxpayers. 

Further reading: 

• Paper return for UK property CGT reporting download form | ICAEW
• Landlords selling must prepare for tax reporting obligations | ICAEW
• TAXguide 15/20: CGT UK property disposal reporting | ICAEW