HMRC has confirmed that a capital gains tax (CGT) UK property return must still be filed using a paper return rather than via the online UK property account.

Even if a tax return has already been submitted declaring the gain, this secondary report must still take place. The only exception is where the tax return is filed within 60 days of the transaction completing, meaning that the return is filed before the due date for filing the CGT UK property return. In this situation, a separate CGT UK property return is not required.

There has been a drop in the number of late returns submitted on a monthly basis following the extension of the deadline from 30 days to 60 days for transactions completing after 27 October 2021. In the quarter to 31 March 2022, 2,000 returns were submitted late, compared to 7,400 in the same quarter a year before.

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The latest clarification by HMRC and the requirement to request a paper tax return could lead to further penalty pain for taxpayers. If you need any assistance in this matter, please get in touch with one of our team below.

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