Timing of disposal for capital gains tax

Produced by Tolley
Timing of disposal for capital gains tax

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

  • Timing of disposal for capital gains tax
  • Date of disposal
  • Non-resident capital gains tax (NRCGT)
  • UK residents disposing of UK residential property
  • Pre year-end review
  • Using the annual exemption
  • Realisation of losses
  • Delaying the tax payment
  • Deferring taxation of the gain
  • Exempting the gain
  • More...

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 capital gains tax (NRCGT)

The following disposals made by non-residents that are taxable in the UK under the NRCGT rules must be reported to HMRC within 30 days of conveyance (ie the date of completion) via a CGT UK property disposals return:

  1. disposals of a directly-held interest in UK residential property from 6 April 2015 onwards

  2. disposals of a directly-held interest in any UK land and any indirectly-held interest in UK land (ie disposal of shares in a property-rich company) from 6 April 2019 onwards

Note that for the purposes of the rate of CGT and the tax year in which it falls, it is the date on which unconditional contracts are exchanged that matters. It is just the reporting deadline which is triggered by the date of completion.

From 6 April 2019, the non-resident must also make a payment the estimated CGT due 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).

See the Non-resident capital gains tax (NRCGT) on UK land ― individuals and Disposals of UK land ― capital gains tax compliance regime guidance notes.

UK residents disposing of UK residential property

From 6 April 2020 onwards, UK residents disposing of directly-held interests in UK residential property must file a CGT UK property disposals return to disclose the disposal within 30 days of the date of conveyance.

A payment of the estimated CGT due must also be made by the same

Popular documents