Reporting of UK Residential Property Disposals for Non Residents to HMRC - 30 Day Deadline
From 6 April 2015, HMRC need to be notified if you’ve sold or disposed of a UK residential property, within 30 days of conveyance. This applies if you’re a:
- Non-resident individual
- Personal representative of a non-resident who has died
- Non- resident who’s a partner in a partnership
- Non-resident landlord
- Non-resident Trustee
- Non-resident company or fund
- UK resident meeting split year conditions (i.e. part non UK resident, part UK resident).
How to tell HMRC?
The disposal must be reported online using the non-resident Capital Gains Tax return form NRCGT (www.tax.service.gov.uk/shortforms/form/NRCGT_Return).
This must be done within the 30 day deadline even if:
- There is no tax due for payment
- A loss has been made
- You are registered with HMRC for Self Assessment
- You are registered with HMRC for Corporation Tax
- You send HMRC Annual Tax on Enveloped Dwellings (ATED) or ATED –related Capital Gains Tax returns.
If a property was jointly owned each owner must tell HMRC about their own gain or loss. There are special rules if you gift a UK residential property to your spouse, civil partner or to charity.
When is payment of the liability due if applicable?
Payment of any non-resident Capital Gains Tax liability should be made within the same 30 day period. The exceptions to this are if you already have an existing relationship with HMRC i.e. you complete annual Self Assessment tax return forms. In such instances you can:
- Defer payment to the normal due date for example 31 January following the end of the tax year of the disposal
- Pay when the tax return is submitted.
Penalties and interest are imposed for failing to notify HMRC of the property disposal within the 30 day deadline as below;
- £100 penalty for up to six months late
- A further £300 penalty for more than six months or 5% of the tax due whichever is greater
- A further £300 penalty for more than six months or 5% of the tax due whichever is greater.
A further penalty will be imposed if the Capital Gains Tax is not paid by 31 January following the end of the tax year of the disposal. The penalty is 5% of the tax outstanding for payment.
For further information please contact a member of our Tax team below: