Disposals of UK land ― capital gains tax compliance regime

Produced by Tolley

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...

Disposals of UK land ― capital gains tax compliance regime

Background

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 and in 2015 the Chancellor committed to introducing a 30-day deadline for all.

This deadline applied to those within the (widened) NRCGT regime with effect from 6 April 2019, and it applied to UK residents disposing of UK residential property with effect from 6 April 2020. Note that it was announced in Autumn Budget 2021 that this deadline is extended to 60 days for disposals that complete on or after 27 October 2021. The extension applies to disposals by both UK residents and non-residents and it follows a recommendation by the Office of Tax Simplification in May 2021.

This 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

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