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New rules on capital gains tax when selling UK residential property

From 6 April 2020, UK resident individuals, trustees and personal representatives selling UK residential property will need to report the disposal to HMRC and pay any capital gains tax (CGT) due within 30 days of completion.

For the provisions to apply, at the time of disposal the land must have either included a dwelling or subsisted for the benefit of a dwelling. A dwelling is a residential property used or suitable for use as a dwelling or which is in the process of being constructed or adapted for use as a dwelling. Institutional buildings are not included and these consist of residential accommodation for school pupils or members of the armed forces; residential accommodation for children or those needing personal care because of old age, disability, drug or alcohol dependency or mental disorder; hospitals and hospices; prisons; hotels; other institutions, and student accommodation with 15 or more bedrooms.

Gardens, grounds and outbuildings also count as residential property and this may include an area larger than the standard half a hectare which would qualify for private residence relief.