We wanted to bring to your attention an important change in the tax rules which you may or may not be aware of. Non UK residents now need to submit a non-resident Capital Gains Tax return if you’ve sold or disposed of UK property or land either directly or indirectly e.g. via a limited company.
You must tell HMRC within 30 days of completion of conveyance. For example, if you convey on 1 July you must tell HMRC by 31 July. If you do not tell HMRC before the deadline you’ll get a late filing penalty and may be charged interest if you do not do this by the 30 day deadline.
Deadline for reporting the disposal and payment
You must report the disposal online using the non-resident Capital Gains Tax return by the 30 day deadline, even if:
- you’ve no tax to pay
- you’ve made a loss
- you’re registered for Self Assessment
If a property was jointly owned, each owner must tell HMRC about their own gain or loss.
You also have to pay any non-resident Capital Gains Tax due within the same 30 day period, although there are exceptions to the pay now rule if you already have an existing relationship with HMRC – for example, through Self Assessment. If you do, you can either:
- pay when you submit your return
- defer payment until your normal due payment date
You’ll get a late filing penalty and be charged interest if you do not file the return by the 30 day deadline.
If you miss the deadline by:
- up to 6 months, you will get a penalty of £100
- more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater
- more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater
If you have to pay any non-resident Capital Gains Tax within the same 30 day period, late payment penalties and interest may also be due if you miss the deadline.
If any non-resident Capital Gains Tax remains unpaid after 31 January after the end of the tax year of the disposal, a late payment penalty of 5% of the tax outstanding will be charged.
If you are a non-UK resident and have recently sold, or are planning on selling any type of UK property or land whether directly or indirectly, please let us know. We can calculate the tax position and submit the return on your behalf to ensure that the filing deadline is met and penalties are avoided.