Where an individual realises a chargeable gain on the disposal of a UK residential property, they must report the gain to HMRC within 60 days of completion and make a payment of the capital gains tax due within the same window.
In most cases, the gain will be reported online – taxpayers will need to create a Capital Gains Tax on UK Property Account if they do not already have one.
However, in response to feedback received, HMRC made a paper version of the return available on a trial basis from February 2023. The trial was initially due to last four months; however, it was extended until the end of September 2023. During the trial period. HMRC reviewed usage of the form to check that it was meeting taxpayers’ needs.
The paper forms are available to download on the Gov.uk website at www.gov.uk/government/publications/report-capital-gains-tax-on-uk-property, together with accompanying notes. They are not intended to replace the online service and should only be used where the taxpayer:
- cannot use the internet;
- has already submitted a Self Assessment tax return for the same tax year to which the report relates; or
- is a secure or Public Department 1 taxpayer who does not file returns online.
The paper form should also be used by an agent who is only dealing with this report, by a corporate trustee or by a non-resident trustee who does not have any capital gains tax to pay.
Where capital gains on UK property are reported using the paper return, the taxpayer should download and print the form, complete it and send the completed form to HMRC at the address on the first page of the form.
After HMRC have received the paper form, they will send the taxpayer a 14-digit reference which starts with an X. The taxpayer will need the reference number when paying the tax that they owe.
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