This blog and video looks at New Capital Gains rules for UK property, and how they affect you.  Death and taxes, the two certainties in life, we can’t plan and control the first event, taxes are a different story.

If you are a UK resident or non UK resident thus applies to you, ignore it and get penalties.

The rules on reporting and paying Capital Gains Tax when selling UK property for the tax year April 2020 onward have changed.

Read on for more information about the rule changes for Reporting and Paying Tax for Capital Gains on UK property.

Ignore it and get penalties! It’s not too late to act now. Do not let this happen to you! Get in touch with us today! We can help you avoid these changes before they come into effect.

Firstly, what are the new rules changes to Capital Gains on UK property.  If you are a UK or non UK resident selling UK residential property, then you have must notify and pay HMRC within 30 days of making the sale.  Moreover, non UK residents selling any type of UK property must notify and pay HMRC within 30 days.

Properties the new Capital Gains Tax rules applies to

The new reporting rules are where you sell (or ‘dispose of’) property that’s not your home. For example, buy-to-let properties, land or inherited property. In most cases, this does not apply when you sell your main home.

How you calculate your Capital Gains Tax

Firstly, calculate your Capital Gain.  Typically for property disposals this will be when your property sale proceeds exceed your properties capital cost.  Sale proceeds are after taking off any related selling costs, for example solicitors fees.  The capital costs include the initial purchase price of the property, stamp duty cost and any improvement costs.  For example, improvement costs include the cost of an extension, but not things that are considered normal maintenance, like decorating.

Secondly, work out the tax.  HMRC doesn’t tax all capital gains and gives you an annual exemption.  Finally, tax the gains based on your level of income.  Fancy an easier way to do this, thought you might.   Therefore, we have created a FREE online calculator which does the number heavy lifting for you.

What happens if I miss the filing deadline?

HMRC cut people some slack up to 31 July 2020.  Thereafter, if you don’t file and pay within 30 days then you will get a late filing penalty.  Interest will be due on the late payment of tax.

Do not wait until the next tax year to report gains on UK residential property sold since 6 April 2020. You may have to pay interest and a penalty if you do.

How to report and pay the tax

You’ll need to create a Capital Gains Tax on UK property account before you can report and pay the tax using this service. You’ll need a Government Gateway user ID and password

If you’re a non-resident, you must report all sales or disposals of UK property, even if you have no tax to pay or have made a loss.


The new Capital Gains rules for UK property sales, property that has not been your main home is far reaching.  The new changes are effective for tax year April 2020 onwards.  If you are a UK resident or non UK resident thus applies to you, ignore it, and get penalties.

Get in touch with us to see how we can help you with your capital gains and all your accounting and tax needs. Our FREE online capital gains calculator will estimate your capital gains and tax to pay.  Click to check out our other FREE Business Calculators.   For more business and finance , news, advice and tips, don’t forget to watch our weekly broadcasts, listen to our weekly podcast I Hate Numbers.

Pro Active Resolutions

The Numbers Crew- Here to help you!