Blog post

Don’t Get Caught Out by Capital Gains Tax Deadlines: A Guide for Landlords

Robin Maxwell

March 11, 2024

As a specialist in property taxation at Rogers Spencer, I regularly encounter landlords who are unaware of the recent changes surrounding capital gains tax (CGT) reporting for residential property sales. This can lead to them inadvertently missing deadlines and incurring unnecessary penalties.

What you need to know about Capital Gains Tax deadlines

In April 2020, the government introduced regulations requiring landlords to report capital gains from residential property sales to HMRC separately from their annual tax return. This reporting must be done within 60 days of completing the sale. Previously, it was possible to simply include these gains on your standard self-assessment tax return.

It’s crucial to understand that this Capital Gains Tax deadline only applies to buy-to-let properties and not to your principal residence. Additionally, the reporting process requires registering online with HMRC and submitting the capital gains figures electronically.

Missing the capital gains tax deadline can be costly, leading to potential late filing penalties, late payment penalties, and interest charges.

Calculating capital gains can be complex, as it involves more than just subtracting the purchase price from the sale price. Several deductions and reliefs can be claimed, including:

  • Costs of a capital nature (e.g., legal fees, estate agent fees)
  • Private residence relief (applicable to periods the property was your main residence)
  • Your annual capital gains allowance (£3,000 per individual from April 2024 onwards)

Navigating these complexities and ensuring accurate reporting can be challenging. Don’t hesitate to seek help!

How can Rogers Spencer help?

  • Online registration with HMRC
  • Calculating your capital gain
  • Submitting your capital gains report
  • Claiming any available reliefs and deductions
  • Don’t risk penalties and unnecessary stress.

This is a simplified overview. If you have a buy-to-let property, inherited property with complexities, or significant gains, it’s wise to consult Rogers Spencer for personalised guidance.

Remember: This information is for general awareness and shouldn’t be taken as tax advice. Always consult with relevant authorities or qualified professionals for accurate and up-to-date information specific to your situation.

Get in touch

Here at Rogers Spencer, we can offer you expert Capital Gains Tax advice, helping to ensure that you always opt for the most cost-effective, compliant route.

Whatever your reasons for selling are, don’t let confusion around Capital Gains Tax catch you out. If you would like to find out more regarding Capital Gains Tax, we are happy to help. Please feel free to contact our friendly team today to find out more.

Robin Rogers spencerRobin Maxwell

Robin Maxwell is a partner of Rogers Spencer and has been working with us since 2003. Robin specialises in Accountancy Solutions, Audits and Tax and VAT. Find out more about Robin here.

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