UK Property Return Deadlines

Based on HMRC’s latest figures, approximately 20% of taxpayers who had gains to declare from UK residential property sales, failed to report and pay the capital gains tax (CGT) due on time in 2021/22.

The CGT 30-day reporting and payment system for UK residential property came into effect on 6 April 2020.

Although late filing penalties for missing the 30-day deadline were waived for the first three months, and the filing period was doubled to 60 days with effect from 27 October 2021, the number of taxpayers who missed the deadline grew.

The new CGT reporting system was designed to double the reporting effort required by the taxpayer and their agent, and it also doubles the risk of a late filing penalty. As the UK property reporting service is not connected to the self assessment system, taxpayers have to report the same gain twice: first on the UK property return and again on their SA tax return.

The penalties due for the late UK property return are imposed in the same structure as applies for a SA return:

  • One day late: £100
  • Over three months late: £10 per day up to 90 days
  • Over six months late: greater of £300 and 5% of tax due
  • Over 12 months late: greater of £300 and 5% of tax due

Taxpayers who are more than 12 months late with their UK property returns will have a penalty liability of at least £1,600 each.

If you have any questions then please do get in touch.