UK Capital Gains Tax on second property sales – 30 day rule

The Capital Gains Tax (CGT) reporting and payment date for UK residents who sell a residential property changed after 6 April 2020. This change means that any CGT due on the sale of a residential property now needs to be reported, and a payment on account of any UK Capital Gains Tax due made within 30 days of completing the transaction.

In practice, this change only applies to the sale of a residential property that does not qualify for Private Residence Relief (PRR). The PRR relief applies to qualifying residential property used wholly as a main family residence. 

HMRC has listed the following types of property sales that are affected:

• a property that you have not used as your main home;
• a holiday home;
• a property which you let out for people to live in;
• a property that you have inherited and have not used as your main home.

If you’re not resident in the UK

Even if you are not a resident in the UK, you must report sales of UK property as a non-resident within 30 days, even if you have no tax to pay.

There can be penalties and interest charged if CGT due on the sale of a UK property is not paid within 30 days of the sale. 

If you’re reporting on behalf of someone else or a trust

You need to use your own Capital Gains Tax on UK property account to report on behalf of someone else.
You’ll need proof you’re allowed to report on their behalf, such as a lasting power of attorney. If the person has died, you’ll need to give their date of death.

If you’re reporting as a trustee of a registered trust, you’ll need the trust’s registration number or unique tax reference.

If you feel that these changes apply to you, then please speak to our experts in our tax team; you can contact them here.