What are the exceptions to the 60-day capital gains tax reporting and payment deadline?

All UK residents must file and pay the capital gains tax within 60 days (or 30 days if the completion date was on or after October 27, 2021) of the completion day if any UK land, including buildings, is subject to the tax. The original deadline of April 6, 2020 was extended.

These clauses are found in Schedule 2 of the Finance Act 2019, which highlights several key themes, including:

This schedule imposes capital gains tax on the following items:

(1) “Any direct or indirect disposal of UK land which meets the non-residence condition (whether or not a gain accrues) and which is made on or after 6 April 2019”

b) Any other direct land sale in the United Kingdom that takes place on or after April 6, 2020, and generates a gain from residential property.

However, this Schedule does not apply to disposals that are expressly excluded.

When something is not disposed of:

       I. Because of one or more no gain/no loss clauses, there is no profit or loss recognized from the sale.

     ii. It is the act of renting out a piece of real estate in an arm’s-length transaction to a non-affiliated third party at no additional expense.

    In this instance, a charitable institution or

    iv. It’s the selling of pension fund assets.

It has been accepted that the word “gain accrues” in the preceding paragraph refers to a chargeable gain that results from certain reliefs and a tax obligation that must be fulfilled.

Expemtions on reporting

HMRC states that if the gain is fully covered by PPR relief, there is no need to file a return under paragraph 2.4.4 of HMRC CGT handbook CG-APP18-240 addressing the 60-day reporting regime. Furthermore, you won’t be required to return it if

Since the person has previously filed and included the sale in their regular self-assessment tax return, they are excused from paying any money for this sale. The entire gain from the sale will be covered by the yearly exemption. For 2022–2023 individuals will be exempt up to £12,300, while trusts will be exempt up to £6,150 annually.

A letting relief claim may be used to offset the taxable gain in specific situations, including as transfers between spouses, civil partners, or charitable organizations. The “no gain no loss” criterion may apply to the disposal in other circumstances, such as where the property was subject to PPR and all new letting relief conditions are met. There is no tax due in these situations because any brought-forward capital losses can be applied to offset the capital gains. Within sixty days of the date the property is sold, on the return filing date, is when the capital gains tax due for this sale must be paid. The amount of tax that must be paid can be reduced if the loss occurred prior to the property’s completion date.

If any claim, election, or notice is to be considered in determining the amount payable on account, it is fair to assume that it will be made or provided at the time of disposal.

Using the HMRC calculator

You can use the HMRC online calculator to find out whether or not the gain needs to be disclosed within 60 days. HMRC offers guidance on how to report and pay property tax in the UK when capital gains tax is owed.

If any of these apply to you, then you will not be able to use the HMRC calculator. You are the one:

has sold land or other chargeable assets (like shares) during the tax year, has decreased their part of a property they still jointly own, is a firm, agent, trustee, or personal representative, and wishes to claim any reliefs other than private residence or letting relief.

requirements for registering a SA

You are required to report the disposal in your self-assessment (SA) return if you have a CGT liability and are under SA. Additionally, you have sixty days to declare and pay gains tax.

Even if they don’t normally submit a SA return, they still have to declare and pay taxes on profits that are computed using their other expected sources of income by the deadlines. Once the final income numbers for the tax year are available, an amended return can be required if the correct amount of tax is not paid. To reveal their income, they can also choose to register for self-assessment. If someone omitted to take into consideration information that was available at the time the payment on account computation was made and the actual liability is higher, they may be liable to pay interest plus the difference between their real liability and the amount paid to HMRC. Should the sum be smaller, HMRC will request payment for the difference plus interest. According to Schedule 2 (paragraphs 14, 15) of FA 2019, an individual may estimate their taxable income for the year, as well as valuations and apportionments, fairly based on their knowledge and circumstances at the time.