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Residential property disposals

Q: My client, who is a UK resident has sold a UK residential property and has made a gain below the annual exemption. Do I have to complete the 30 day CGT report?

A: Not every disposal of UK residential property by, UK resident individuals needs to be reported under the new rules. Only those giving rise to a chargeable gain and resulting in a CGT liability need to be disclosed. Disposals where no CGT is due, for example, disposals covered by principal private residence relief, or are within the CGT annual exemption, inter-spousal transfers and sales resulting in a capital losses are excluded from the 30 day reporting rules. As the CGT 30 day report is separate from the self-assessment tax return, the disposal may be reported on two returns in some instances. Any capital gains tax paid under the new rules will be treated as a payment on account against the final self-assessment liability.