CGT 5 - Reporting of Capital Gains

Question 1

UK residents must report taxable gains on disposals of UK residential property by ….

Answer 1

means of an online property return within 60 days of the completion of the disposal. There are penalties for late reporting.

Question 2

No online property return is required if …

Answer 2

there is no CGT payable.

Question 3

For taxpayers who are issued with self-assessment tax returns who have completed an online property return….

Answer 3

the disposal must also be reported on the Capital Gains pages of the self assessment return.

Question 4

Where a taxpayer makes a disposal of UK residential property giving rise to a taxable gain, a payment on account of the CGT….

Answer 4

must be made within 60 days of completion.

The taxpayer should make a ‘best estimate’ of the CGT due on the residential property disposal.

This estimate can take account of the annual exempt amount and any capital losses up to the date of completion.

This payment on account is deducted from CGT due for the year. Any balance is payable by the following 31 January.

Question 5

For disposals of assets other than UK residential property, taxpayers will report their capital gains via their self-assessment tax return.

Taxpayers who do not file self-assessment returns can report gains ….

Answer 5

by a ‘real-time’ return due no later than 31 December following the tax year.

Question 6

CGT on gains other than on disposals of UK residential property is due ….

Answer 6

no later than 31 January following the tax year. There are no payments on account.

Question 7

Non-UK residents are only liable to CGT on disposals of:

Answer 7

a. UK land and property;
b. assets deriving their value from UK land and property; and
c. assets used in a UK trade.

Disposals under (a) and (b) should be reported on an online property return within 60 days of completion (even if no CGT is due).

Any CGT due on such disposals must be paid on account within 60 days of completion.