Personal Tax Return | Accountants Coventry
                     Changes in 
Capital Gains Tax 
Rules on Sale of 
Property
Cheylesmore Accountants
Changes in Capital Gains Tax 
Rules on Sale of Property
✧✧ TThhee  ggoovveerrnnmeenntt’’ss  ddeeccisisioionn  ttoo  iimpplelemeenntt  aa  tteemppoorraarryy  
ssttaampp  dduuttyy  hhoolildidaayy  oonn  hhoouusseess  ppuurrcchhaasseedd  uunnddeerr  ££550000,,000000  
hhaass  ccrreeaatteedd  aann  aarrttifiificciaial l bboooom  inin  tthhee  UUKK  pprrooppeerrttyy  sseeccttoorr  
wwitithh  maannyy  aatttteemppttiningg  ttoo  lalanndd  aa  pprrooppeerrttyy  ffoorr  aa  lolowweerr  ccoosstt  
tthhaann  wwoouuldld  hhaavvee  ootthheerrwwisisee  bbeeeenn  tthhee  ccaassee..  SSooaarriningg  hhoouussee  
pprriciceess  ,,aa  rreessuultlt  ooff  tthhee  uupprrooaarr  inin  ddeemaanndd  ffrroom  eexxisisttiningg  
hhoomeeoowwnneerrss  aanndd  bbuuyy--ttoo--lelett  ininvveessttoorrss,,  hhaavvee  uunnffoorrttuunnaatteelyly  
pprriciceedd  oouutt  fifirrsstt--ttiimee  bbuuyyeerrss..  
✧ Amidst all the chaos from coronavirus and the 
resurgence in activity in the property sector, an 
adjustment to the rules surrounding submission 
and payment of CGT on sale of second homes or 
buy-to-let houses has quietly slipped through 
the net. Under normal circumstances, individuals 
would have 22 months to file for CGT but since 
April, HMRC require any taxable gains on sale of 
property to be reported and paid in under in 30 
days of completing the transaction. 
✧ Lack of awareness surrounding sudden changes in taxation 
policies isn’t an unprecedented issue in the UK given the 
2015 situation involving non-residents who sold property and 
awaited until the filing of their self-assessments to report the 
sale to HMRC. This resulted in heavy fines which exceeded 
£1000 in certain cases, albeit some were later overturned on 
appeal. Late filings spawn an initially penalty of £100 which, 
a quarter later, begins increasing by £10 a day up to a 
maximum of £900. After 6 months, an additional fine will be 
levied of 5% of the tax due or £300, whichever is higher. 
Regarding payment of CGT, sellers of property incur a fine of 
5% of the tax unpaid at 30 days, 6 months and 12 months.
✧ Whilst the government has allowed 
payment of certain taxes such as VAT to be 
deferred for a given period of time, the 
CGT deadline has remained in place with 
HMRC pointing to the rule changes being 
displayed on its website. This, in 
conjunction with the information packs 
sent to conveyancers and estate agents, 
means the kind of leniency afforded in the 
aftermath of 2015 is unlikely to result at 
present. 
✧ Payment of CGT doesn’t 
apply, however, to 
individuals who possess 
only one home which is 
considered to be their main 
residence, i.e. at which they 
have resided throughout 
ownership, if certain other 
conditions are met due to 
the availability of Private 
Residence Relief.
✧ Concerned about your personal tax situation? Need assistance 
understanding how the capital gains tax rule applies. Then get in 
touch with us as soon as possible to determine your potential tax 
liability to avoid having to face any potential fines and penalties. 
Our Coventry-based accountants deliver a high quality service to 
minimise the CGT payable by claiming any allowances applicable 
and can also communicate with HMRC to extend the deadline on 
your CGT filing should circumstances permit for the same. Our host 
of taxation services can also enable you to plough back much of 
your profits and retain wealth for which you have worked so hard. 
Contact Cheylesmore 
Accountants
✧ Business Email: [email protected]
✧ Contact No.: 02476017778
✧ Address: 6 The Mount, Coventry CV3 5GU, United 
Kingdom
✧ Website: https://www.cheylesmore.com
 
Thanks For Watching