HMRC Launch Online Reporting Service For CGT

HM Revenue and Customs (HMRC) has launched a new online service to help homeowners to report Capital Gains Tax (CGT) following the sale of their additional dwelling.

Earlier this year, HMRC announced that owners disposing of properties not used as their main residence, such as holiday homes, property lets and inherited property will have 30 days to notify HMRC of the sale whether there is CGT owing or not.

Owners of additional dwellings will no longer be permitted to defer payment via their Self Assessment return.

HMRC has issued a warning that a penalty, in addition to any interest on what they owe, could be imposed for owners making a declaration after 30 days.

HMRC is hoping the online service will help to improve the ease of transition into the new system and embed the new rule more efficiently.

Sarah Kelsey, Deputy Director, HMRC, said:

“We want to help customers know exactly what they need to do, as it’s really important that everyone involved with the sale of a residential property fully understands the changes.

“People don’t usually have to pay Capital Gains Tax if they sell the house they live in, but this is a significant change for customers who do have to pay the tax and who up to this point would include the gain in their Self Assessment return.

“There will be lots of help and guidance available to individuals and agents, or those representing trusts, and we are providing a new online service to make it easier for all our customers to both notify and pay online within 30 days”.

Today's Conveyancer