60-Day Capital Gains Tax Reporting for UK Residents

FA 2019 Schedule 2 introduces capital gains tax reporting within 60 days (previously 30 days for disposal prior to 27 October 2021) on completion.

The rules were first introduced for non-residents back in 2015 with the re-basing provisions that can be found at TCGA 1992 Schedule 4AA. As the client is a UK resident, we won’t divulge into the rebasing provisions as they are complex, and you may wish to speak to the helpline or consultancy team if you have any queries.

These rules were extended to UK residents that made disposals on residential dwellings (it doesn’t currently apply to commercial property or other land disposals for UK residents; non-residents have to report on any UK land).

TCGA 1992 Sch 1B outlines what is a dwelling-related gain. Care needs to be taken when looking at the history of land and if there was a dwelling during the applicable period of ownership. Further guidance can be found on CG73550.

Analysis

As Property 1 is foreign property, there is no capital gains filing requirement. You would, however, want to claim the loss, and that can be done on the self-assessment.

Property 2 would need a capital gains tax report assuming it is not an excluded disposal (e.g., nil gain, nil loss on spousal transfer). When calculating the gain, unfortunately the loss made on Property 1 cannot be included as it has not yet been claimed for. This is where you may wish to use the CG reporting facility to report the loss on Property 1, so the losses have been claimed and “banked” beforehand and can be claimed on the calculations on the gain in Property 2.

Other considerations and tips

• UK residents don’t need to report a gain if there is no chargeability to tax (e.g., it’s fully covered by PPR or spousal transfers). Non-residents will, however, be required to report even if there is loss, gain, or even if covered by the annual exempt amount.
• Where in respect of a disposal of UK land, a person is required to make a return for the disposal under FA 2019, Sch. 2, payment on account of the CGT is due on the filing date for the return, i.e., 60 days from the date of completion.
• Late filing follows that of self-assessment (FA 2009, Sch. 55, para. 3–6).
• A 60-day return is not required if the person has submitted a self-assessment return that takes into account the disposal (para. 3(3)(b) and 5). E.g., if the completion of the property sale is on 31 March 2024, it would be due on 30 May 2024, they could in theory submit their self-assessment return before 30 May 2024. This would also delay the tax payment due as it would follow the self-assessment payment deadline of 31 January 2025.
• The 60-day return looks at the date of completion, and this is different from the normal requirement of self-assessment, which tends to look at the date of exchange. TCGA 1992 S.28 outlined the date of disposal CG14261.
• Here is a link to HMRC guidance for agents that you may find useful when trying to obtain access to the gateway for your client: https://www.gov.uk/guidance/managing-your-clients-capital-gains-tax-on-uk-property-account