After 6th April 2020, the reporting rules for the sale of residential property changed. Previously you could simply report the sale of a residential property within a self assessment tax return, but upon the changes in HMRC reporting rules, now any individual who sells a residential property must report this to HMRC within 60 days.
A Capital Gains Tax return is required, even if you are not registered for self assessment! This can be quite a headache, especially for those who are not comfortable with operating a HMRC Government Gateway account, or even for those unsure on how to calculate the profit on the sale of their property.
As accountants, we can streamline this process. From understanding the purchase price, considering all potential legal fees and finally reporting any potential gain to HMRC by creating a Capital Gains Tax for UK Property account – we can guide you through this arduous task.
Moreover, it is important to act with speed once a property sale completes, with the 60 day window for reporting the sale leaving little time to calculate any potential improvements that you might have made to the property over the years. As accountants, our role is not only to consider which repairs to a property might be considered to be ‘improvements’, but also to reject any expenses which are simply repairing an existing area of the house – such as a repair to an existing window frame.
In essence, at Shenkman Accountancy Services, we have expertise in helping with the reporting of any potential Capital Gain on the sale of residential property. Get in touch to see how we might be able to assist!