Capital Gains Tax on Residential Property

Apr 27, 2022 | Blog

If you sell a residential property that isn’t your main residence, or hasn’t always been your main residence you may be have to pay Capital Gains Tax (CGT) on any profits.


If you sold the property since 6 April 2020 then you must report and pay CGT within 60 days of the completion date.


Personal Tax Account

To report a residential property sale you will need to have access to your personal tax account. This can take up to two weeks to verify, so it is important to act before the sale to ensure the 60 day deadline can be met.



To report the sale you will need:

  • Calculations for each capital gain or loss you report

  • Details of how much you bought and sold the property for

  • The date you took ownership

  • The date you exchanged on the sale and the completion date

  • The costs of purchasing and disposing of the asset, such as legal and estate agent fees

  • Details of costs of capital renovations and improvements made to the property

  • If you lived in the property, the dates of your residency

Although the details of the sale are reported to HMRC, you must still include the sale on your tax return for the tax year the sale relates, and file the tax return by 31 January following 5 April tax year end


Capital Gains Tax rates on residential properties are currently 18% for income in the basic tax band and 28% for income above the basic rate band.

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