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Q: My client has just approached me to complete his 2020-21 self-assessment return and I have noticed he made a residential property disposal that was not declared on a UK property form within 30 days of the disposal. Can the gain simply be declared under self-assessment.

A: No. HMRC will still require a separate UK property disposals return to be completed and submitted along with the self-assessment return. As the UK property disposals return will have been submitted late HMRC will charge interest and penalties. The penalties for late filing are as follows:

  • fixed penalty of £100 if the capital gains tax UK property disposals return is filed late,
  • daily penalties of £10 per day once the capital gains tax UK property disposals return is three months late, and
  • tax-geared penalties of 5% of the liability or £300 if higher after the capital gains tax UK property disposals return is six months or 12 months late.

At the moment HMRC do not appear to be charging the daily penalties but this may be something that will happen in future.

HMRC practice is that as long as the CGT is paid with 30 days of the self-assessment filing date (31 Jan) no late payment penalties will be applied.

The time allowed to submit the details of the disposal is extended to 60 days for sales completed on or after 27 October 2021.