HMRC have issued a reminder to anyone who is yet to pay Capital Gains Tax if they sold a second home during the 2019 to 2020 financial year. Any profit made from selling a second home within the UK during 2019 to 2020, needs to be declared on a Self Assessment tax return by 31st January 2021.
Earlier this year, HMRC changed how customers declare and pay Capital Gains Tax. Residents in the UK should now use the online service to inform HMRC of any profits made on selling a second home and pay the tax due, within 30 days of completion.
The 2019 to 2020 tax year is the last year UK residents will pay their Capital Gains Tax as part of the Self Assessment process, as the change came into effect on 6th April 2020. The changes to how Capital Gains Tax declarations are made, will also apply to landlords and property developers. They should now use the online service to inform HMRC of any Capital Gains Tax declarations immediately after selling a residential property. This will not affect anyone selling a UK property that is their main residence.
Non-UK residents who are selling UK property and land should also use HMRC’s online service, regardless of whether there is a gain.
HMRC will still need to be informed of any Capital Gains Tax liabilities on the 2020 to 2021 Self Assessment tax return.
Anything above the Capital Gains Tax allowance of £12,300 for the financial year 2020 to 2021, will still need to be declared to HMRC in the Self Assessment tax return. This can include:
- Business assets
- Main home if it has been let out or is used for business
- Most personal possessions worth over £6000 (excluding your car)
Further information can be found on the government website.
If you have any questions regarding the changes to Capital Gains Tax declarations or you need help with Self Assessment tax returns, get in touch via our contact page and we will be more than happy to help.