HMRC has set up a “Real Time” Capital Gains Tax Service to help individuals report the disposal of certain assets which are subject to CGT. This avoids the need for that individual to register for Self Assessment if they would otherwise not be required to submit a tax return.
The Real Time Capital Gains Tax Service is one of the two ways through which you can pay your Capital Gains Tax (CGT) bill.
Basically, if you sell an asset for a profit, you have two options:
- You either file a Self Assessment tax return – by January 31st of the following tax year
- You use HMRC’s Real Time Capital Gains Tax Service – and pay the tax bill within 30 days
Report in a Self Assessment tax return
You can report your gains in a Self Assessment tax return in the tax year after you sold or disposed of an asset.
If you’re reporting gains on property using a Capital Gains Tax on UK property account, you must include details of your gain and any tax you’ve paid in your tax return.
Do not wait until the next tax year to report gains on UK residential property sold since 6 April 2020. You may have to pay interest and a penalty if you do.
Report using the ‘real time’ Capital Gains Tax service
You can use the service to report gains on assets you sold during the tax year:
- 2022 to 2023
- 2023 to 2024
If you’re registered for Self Assessment, you’ll still need to include details of the sale in your Self Assessment tax return.
You cannot use the service to report:
- gains on residential property
- on behalf of someone else
If you sold a property in the UK on or after 6 April 2020
You must report and pay any Capital Gains Tax due on UK residential property within:
- 60 days of selling the property if the completion date was on or after 27 October 2021
- 30 days of selling the property if the completion date was between 6 April 2020 and 26 October 2021
You may have to pay interest and a penalty if you do not report and pay on time.
If you sold a residential property before 6 April 2020, you must report your gains in a Self Assessment tax return for the tax year following the sale.
If your property was jointly owned
You must report your own gain or loss. Special rules apply if you give a UK property to your spouse, your civil partner, or to charity.
Before you start
Work out your gain to find out if you have to report and pay tax.
If you’re a UK resident, you do not need to report your gains online if your total gains are less than the tax-free allowance.
Report and pay online
Use a Capital Gains Tax on UK property account to:
- report and pay any tax due on UK property
- view or change a previous return
You’ll need a Government Gateway user ID and password to set up your account or sign in. If you do not have a user ID, you can create one the first time you sign in.
What you need to know
You’ll need the:
- address and postcode of the property
- date you got the property
- date you exchanged contracts when you were selling (or ‘disposing’ of) the property
- date you stopped being the property’s owner (completion date)
- value of the property when you got it
- value of the property when you sold or disposed of it
- costs of buying, selling or making improvements to the property
- details of any tax reliefs, allowances or exemptions you’re entitled to claim
- property type, if you’re not a resident of the UK
Report using a paper form
If you cannot report online, you can use a paper form instead for the 2022 to 2023 tax year and for the 2023 to 2024 tax year.
For the tax years 2020 to 2021 and 2021 to 2022 – or if you cannot access the internet – you’ll need to ask HM Revenue and Customs (HMRC) for a paper form.
HMRC will send you a 14-digit reference number starting with ‘x’ after you’ve reported your capital gains. You’ll need your reference number to pay what you owe within the deadline.
If you’re not a UK resident
You must report all sales and disposals of UK property or land by the deadline, even if you have no tax to pay.
If you sold UK property or land before 6 April 2020, you’ll need to report your gains using a non-resident Capital Gains Tax return.
If you’re reporting on behalf of someone else or an estate
Use your own Capital Gains Tax on UK property account to report for someone else.
You’ll need proof you’re allowed to report on their behalf, such as a lasting power of attorney. If the person has died, you’ll need their date of death.
You cannot pay using your account if you’re reporting a gain on behalf of an estate as a personal representative (executor or administrator). HMRC will let you know how to pay after you report the gain.
Keep a digital or printed copy of the return for your records.
You cannot view or change a return that you’ve made for someone else online. Use a paper form for the 2022 to 2023 tax year and for the 2023 to 2024 tax year if you need to make a change.
For the tax years 2020 to 2021 and 2021 to 2022 – or if you cannot access the internet – you’ll need to ask HM Revenue and Customs (HMRC) for a paper form.
There’s a different way to report your client’s Capital Gains Tax on UK property as an agent.
If you’re reporting on behalf of a trust
If you’re reporting as a trustee of a registered trust, you’ll need the trust’s registration number or unique tax reference.
If you’re a corporate trustee, you’ll need to use a paper form for the 2022 to 2023 tax year and for the 2023 to 2024 tax year.
For the tax years 2020 to 2021 and 2021 to 2022 – or if you cannot access the internet – you’ll need to ask HM Revenue and Customs (HMRC) for a paper form.
If you do not pay when you report
You can pay after you report your gains by:
- approving a payment through your online bank account
- online or telephone banking
- debit or credit card
- cheque
View and change a previous return
You can use your Capital Gains Tax on UK property account to view and change your own previous returns.
Use a paper form if you need to change a return you made for someone else for the 2022 to 2023 tax year and for the 2023 to 2024 tax year.
For the tax years 2020 to 2021 and 2021 to 2022 – or if you cannot access the internet – you’ll need to ask HM Revenue and Customs (HMRC) for a paper form.
