Timing of disposal for capital gains tax

By Tolley

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

  • Timing of disposal for capital gains tax
  • Date of disposal
  • Pre year-end review
  • Type of disposal

Date of disposal

The date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.

See the Introduction to capital gains tax guidance note.

The rules for determining the date of disposal vary according to the type of disposal made (see below).

Non-resident CGT

Where a non-resident taxpayer disposes of a UK residential property on or after 6 April 2015, or disposes of a UK non-residential property on or after 6 April 2019, the disposal must be reported to HMRC within 30 days of the conveyance of the property, which is likely to be the completion date of the sale. However, the date of the disposal for the purposes of the rate of CGT and the tax year in which it falls is still the date on which unconditional contracts are exchanged. It is just the reporting deadline which is triggered by the date of completion.

FA 2019, Sch 2, paras 1–5 (from 6 April 2019); TMA 1970, s 12ZB (up to 5 April 2019)

From 6 April 2019, the non-resident must also make a payment on account of the CGT by the same 30-day deadline. Prior to this date, a payment was only required where the taxpayer was not already within the Self Assessment regime (ie filed UK Tax Returns each year).

FA 2019, Sch 2, paras 6–8 (from 6 April 2019); TMA 1970, s 59AA (up to 5 April 2019)

See the Capital gains tax charge on UK residential property owned by non-residents guidance note.

UK residents disposing of UK residential property

From 6 April 2020, the non-resident CGT compliance regime discussed above applies to UK residents disposing of

More on Capital gains tax: