Capital Gains Residential Disclosures

Disposing of a property is a significant personal decision, and a large financial transaction so it can be a minefield to submit everything correctly to HMRC within the required 60 day timetable.

At Hanley & Co, with our wealth of experience, we can help you through this process from tax planning ahead of a potential disposal, through to submitting the right disclosures to HMRC when the disposal happens

What are the rules?

From April 2020, HMRC introduced new requirements for the reporting of disposals of UK residential property. This changed the way capital gains are reported to HMRC for landlords selling rental property, but also when there is a sale of a second home (like a holiday home).

Previously the gain would have just been reported on an annual Self Assessment tax return and the tax paid by the 31st January in the following tax year.

Now you are required to submit a separate Return to report the gains on sale of property (and pay the tax due) within 60 days of completion

How can Hanley & Co help?

We have a jargon-free, transparent, proactive approach to property transactions.

For our clients, we regularly:

  • estimate potential capital gains and tax on potential disposals, to help you weigh up if now is the right time to sell
  • use our extensive experience to make sure you claim tax relief on all possible expenses you’ve incurred over your ownership of the property
  • use our expert tax knowledge to make sure tax relief is claimed for any periods which are exempt from Capital Gains Tax, for example if you’ve ever lived in the property or been forced to live in work related accommodation (for example military). Did you know the final 9 months of any ownership period can be claimed as free from Capital Gains tax?
  • help you plan the right timing for your property disposal – you would be surprised at what a difference tweaking the disposal date by even a few days can make to your effective rate of tax on a gain
  • prepare and submit Capital Gains Residential Returns to HMRC (or help clients submit the details themselves)
  • prepare and submit personal Self Assessment Tax Returns at the end of the tax year in which the disposal takes place to HMRC to support the preceding Capital Gains Residential Return
  • deal with any arising queries with HMRC to minimise stress and time for our clients

So, if you have a second home or rental property that you are thinking of disposing of, or a gain that requires reporting then don’t delay – contact us and we will support you each step of the way.

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