Disposals of UK land ― capital gains tax compliance regime

Produced by Tolley
Disposals of UK land ― capital gains tax compliance regime

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Disposals of UK land ― capital gains tax compliance regime
  • Background
  • Summary
  • Scope of the provisions
  • Taxpayers
  • Disposals
  • Excluded disposals
  • Difficulties with residence status
  • Direct disposals of mixed use property by UK residents
  • Reporting the disposal of UK land
  • More...


When the non-resident capital gains tax (NRCGT) rules were first introduced in respect of residential property in April 2015, for compliance purposes non-residents were divided into two groups: those within self assessment and those not within self assessment.

Whilst both groups needed to file a NRCGT return within 30 days after the date of conveyance of the property, only those outside of the self assessment regime were required to make a tax payment by the same deadline. Those within self assessment did not need to make a tax payment until the normal due date under self assessment (ie 31 January after the end of the tax year). Understandably, this led to confusion for both taxpayers and advisers.

In Autumn Statement 2015, the Chancellor announced that a 30-day deadline would be introduced for the payment of capital gains tax due on all UK residential property disposals (including those by UK residents), with a view to this being legislated in FA 2017. However, this proved more difficult to legislate than expected and so the implementation was pushed back further and further until it was finally codified in FA 2019, along with the extension of the NRCGT regime to non-residential properties.

Note that this new regime should not be confused with the real time transaction tax return, which is a voluntary means of reporting the chargeable gain or allowable loss on any asset straight after a disposal. Such a return can be filed at any time up to and including 31 January after the end of the tax year in which the disposal was made. For more details of this voluntary reporting, see the Simple assessments guidance note.

For clarity, this guidance note uses the non-statutory terms ‘capital gains tax UK property disposals compliance regime’ and ‘capital gains tax UK property disposals return’ when discussing the provisions in FA 2019, Sch 2 to avoid confusion with the self assessment regime and the self assessment tax return.

HMRC has released a factsheet to the professional bodies which is

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