How to Report and Pay Capital Gains Tax
16/07/2022 - 14 minutes readHow to report and pay Capital Gains Tax depends on whether you sold:
Before you can report any gains you’ll need:
- – details of how much you bought and sold the asset for
- – the dates when you took ownership and disposed of the asset
- – any other relevant details, such as the costs of buying, selling or making improvements to the asset and any tax reliefs you’re entitled to
- – calculations for each capital gain or loss you report
How to report and pay Capital Gains Tax if you’re not a UK resident
You must report all sales of UK property or land, even if you have no tax to pay. You do not need to report or pay tax on anything else that’s increased in value.
How to report and pay Capital Gains Tax if you sold a property in the UK on or after 6 April 2020
You must report and pay any Capital Gains Tax due on UK residential property within:
- – 60 days of selling the property if the completion date was on or after 27 October 2021
- – 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021
You may have to pay interest and a penalty if you do not report and pay on time.
If you sold a residential property before 6 April 2020, you must report your gains in a Self Assessment tax return for the tax year following the sale.
How to report and pay Capital Gains Tax if your property was jointly owned
You must report your own gain or loss. Special rules apply if you give a UK property to your spouse, your civil partner, or to charity.
How to report and pay Capital Gains Tax – Before you start
Work out your gain to find out if you have to report and pay tax.
If you’re a UK resident, you do not need to report your gains online if your total gains are less than the tax-free allowance.
How to report and pay Capital Gains Tax – Report and pay online
Use a Capital Gains Tax on a UK property account to:
- – report and pay any tax due on UK property
- – view or change a previous return
You’ll need a Government Gateway user ID and password to set up your account or sign in. If you do not have a user ID, you can create one the first time you sign in.
We discuss this in further detail here.
How to report and pay Capital Gains Tax – What you need to know
You’ll need the:
- – address and postcode of the property
- – the date you got the property
- – the date you exchanged contracts when you were selling (or ‘disposing’ of) the property
- – the date you stopped being the property’s owner (completion date)
- – value of the property when you got it
- – value of the property when you sold or disposed of it
- – costs of buying, selling or making improvements to the property
- – details of any tax reliefs, allowances or exemptions you’re entitled to claim
- – property type, if you’re not a resident of the UK
How to report and pay Capital Gains Tax
How to report and pay Capital Gains Tax – Report using a paper form
Ask HM Revenue and Customs (HMRC) for a paper form if you cannot use the service.
HMRC will send you a 14-digit reference number starting with ‘x’ after you’ve reported your capital gains. You’ll need your reference number to pay what you owe within the deadline.
How to report and pay Capital Gains Tax if you’re not a UK resident
You must report all sales and disposals of UK property or land by the deadline, even if you have no tax to pay.
If you sold UK property or land before 6 April 2020, you’ll need to report your gains using a non-resident Capital Gains Tax return.
How to report and pay Capital Gains Tax if you’re reporting on behalf of someone else or an estate
Use your own Capital Gains Tax on UK property account to report for 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 their date of death.
You cannot pay using your account if you’re reporting a gain on behalf of an estate as a personal representative (executor or administrator). HMRC will let you know how to pay after you report the gain.
Keep a digital or printed copy of the return for your records.
You cannot view or change a return that you’ve made for someone else online. Contact HMRC to request a paper return if you need to make a change.
There’s a different way to report your client’s Capital Gains Tax on UK property as an agent.
How to report and pay Capital Gains Tax if you’re reporting on behalf of a trust
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’re a corporate trustee, you’ll need to ask HMRC for a paper return.
How to report and pay Capital Gains Tax if you do not pay when you report
You can pay after you report your gains by:
- – approving a payment through your online bank account
- – online or telephone banking
- – debit or credit card
- – cheque
View and change a previous return
You can use your Capital Gains Tax on UK property account to view and change your own previous returns.
Contact HMRC to request a paper return if you need to change a return you made for someone else.
How to report and pay Capital Gains Tax if you have other capital gains to report
If your capital gain is not from a residential property sold after 6 April 2020, you can report your gain:
- – in a Self Assessment tax return
- – using the ‘real time’ Capital Gains Tax Service
Before you start, you’ll need to work out if you need to pay and how much you owe.
Report in a Self Assessment tax return
You can report your gains in a Self Assessment tax return in the tax year after you sold or disposed of an asset.
If you’re reporting gains on a property using a Capital Gains Tax on a UK property account, you must include details of your gain and any tax you’ve paid in your tax return.
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.
You can get help with your tax return from an accountant or tax adviser.
After you’ve submitted a return, HM Revenue and Customs (HMRC) will tell you how much you owe, how to pay and when to pay.
Report using the ‘real time’ Capital Gains Tax service
You can use the service to report gains on assets you sold during the tax year:
- – 2021 to 2022
- – 2022 to 2023
If you’re registered for Self Assessment, you’ll still need to include details of the sale in your Self Assessment tax return.
How to pay
After you’ve reported your gains, HMRC will send you a letter or email giving you a payment reference number starting with ‘x’.
Use your payment reference when you pay:
You must report by 31 December in the tax year after you made your gain and pay by 31 January. For example, if you made a gain in the 2022 to 2023 tax year, you need to report it by 31 December 2023 and pay by 31 January 2024.
If you need to make a change
You’ll need to submit a new report using your report reference number starting with ‘RTT’. You’ll be sent this number by email after you first use the service.
Ways to pay
You’ll need your 14-digit reference number starting with ‘x’ to pay.
If you sold a property in the UK on or after 6 April 2020, you can find your number:
- – in your Capital Gains Tax on UK property account if you sent your return online
- – in a letter sent to you by HM Revenue and Customs (HMRC) if you submitted a return on paper or on behalf of someone else
If you used the ‘real time’ Capital Gains Tax Service, you can find your number in a letter or email sent by HMRC.
If you report your capital gains in a Self Assessment tax return, you’ll need to pay your tax as part of your Self Assessment tax bill.
Pay online
If you reported your Capital Gain using the real-time service
You can use HMRC online services to pay online by debit or credit card.
HMRC will accept card payment on the date you make it, not the date it reaches their account.
There’s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable.
If you reported your gain using a Capital Gains Tax on UK property account
Sign into your Capital Gains Tax on UK property account to pay online.
You can pay by:
- – debit or corporate credit card
- – approving a payment through your online bank account – you’ll be asked to sign in to your online bank account
Bank transfer
You can pay using online banking or telephone banking. It usually takes up to 3 working days for your payment to reach HMRC.
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 10 | 12001020 | HMRC Shipley |
Payments from a non-UK account
| Account number (IBAN) | Bank Identifier Code (BIC) | Account Name |
|---|---|---|
| GB03BARC20114783977692 | BARCGB22 | HMRC Shipley |
Cheque
You can send a cheque by post to HMRC.
HMRC
Direct
BX5 5BD
Write your 14-digit Capital Gains reference number starting with ‘x’ on the back of the cheque.
It usually takes 3 working days for your payment to reach HMRC.
Your payment may be delayed if you do not fill in your cheque properly.
How can MCL Accountants help?
Contact MCL Accountants on 01702 593 029 if you have any queries regarding the preparation of a CGT return on the sale of a property or if you need any assistance with the preparation and submission of your business accounts or self-assessment tax returns to HMRC.
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Ishan provides financial management, taxation and transactional advice to business entities of all sizes. His expert areas include statutory compliance, business taxation, personal tax & transactional processing and systems. Industry sectors include professional services, retail, hospitality and entertaining & media and advertising services.
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