Financial Planning, Mortgages,

Gains on disposal of UK Residential Property close to the end of the tax year (5 April)

UK resident Individuals selling UK residential property at a gain, where the gain is not fully covered by private residence relief, need to submit a capital gains tax on property disposal (CGT PPD) return within 60 days of completion whereas non-resident individuals need to submit this return regardless of whether the property is sold at a gain or loss.

However, individuals selling UK residential property at a gain close to the tax year end (5 April) can file a self-assessment (SA) tax return instead of the CGT PPD return within 60 days of completion. The effect of this is that the CGT on the gain will be payable on 31 January of the following tax year instead of 60 days after the date of disposal, which implies a significant cash flow advantage!

So if you realise a gain on disposal of a UK residential property close to 5 April, file a SA tax return instead of a CGT PPD return within 60 days of completion to secure a significant cash flow advantage!

Note that the tax year of disposal is determined by the date of exchange and not the date of completion.

Please contact us for further advice. You can contact us via welcome@pkgroup.co.uk or +44 (0)20 8334 9953

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