Capital Gains Tax on UK Property & Land

How Can We Help?

We can help you by preparing and submitting the relevant tax return to HMRC. As part of this, we will calculate the tax liability taking into account any tax reliefs and exemptions available to reduce the amount due. There are additional options available to non-UK residents when they dispose of property or land located in the UK. 

Thinking of selling?

Maybe you're not ready to sell but you'd like to understand your potential tax payment on a future sale of property or land. We can prepare computations and also provide advice on how you may lawfully structure your affairs in order to reduce the tax payment due on the sale of the property.

Moreover, if you decide to sell at a later time, we can update the computations and submit the return on your behalf for a small fee. 

UK Tax Resident: Do I Need to Send a Tax Return to HMRC?

You may have to pay Capital Gains Tax (CGT) if you make a profit when you sell property that’s not your home, for example:

  • buy-to-let properties
  • business premises
  • land
  • inherited property

There are different rules if you:

  • sell your home
  • live abroad
  • are a company registered abroad

You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.

If you do not report and pay before the deadline you may incur late filing penalties and interest.

Non-UK Tax Resident: Do I Need to Send a Tax Return to HMRC?

You may have to pay Non-resident Capital Gains Tax (NRCGT) if you’ve disposed of:

  • residential UK property or land (land for these purposes also includes any buildings on the land)
  • non-residential UK property or land
  • mixed use UK property or land
  • rights to assets that derive at least 75% of their value from UK land (indirect disposals)
  • A ‘mixed use’ property is one that has both residential and non-residential elements. For example, a flat connected to a shop, doctor’s surgery or office.

 You must report and pay non-resident Capital Gains Tax if you’re a:

  • non-resident individual
  • personal representative of a non-resident who has died
  • non-resident who’s in a partnership
  • non-resident landlord
  • non-resident trustee
  • UK resident meeting split year conditions and the disposal is made in the overseas part of the tax year

You must report and pay within 60 days of completion of conveyance.

If you do not report and pay before the deadline you may incur late filing penalties and interest.

 

For a confidential, no obligation discussion, contact us using the form below or by sending a message to contact@pcttax.com

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