Q&A: Selling a residential BTL property and CGT

Q. I am in the process of selling a residential buy-to-let property. My conveyancer has told me that I need to complete a "30-day CGT return". However, I'm sure I read that I can just wait and include the sale on my tax return instead. Is this correct?

A: You need to do both for a residential buy-to-let property. A UK property return is required, though following the Budget last month the deadline has been extended from 30 to 60 days after completion.*

You need to make a best estimate of any tax due on the disposal, accounting for any losses that have arisen  in advance of the completion date, as well as any private residence relief and available annual exemption. You will then report the gain on your self-assessment return, claiming a deduction for the advance payment.

* For more information on this topic, please see our blog, ‘CGT deadline extended for those selling UK residential property.’

About the Author

Beverley Howells

Partner

Beverley is a partner with Torgersens, specialising in tax. Her role covers all aspects of taxation, from managing compliance to providing business advice. Her main areas of expertise are in business tax and corporation matters and in particular, acting for owner-managed businesses. Having joined the firm as a graduate trainee, Beverley qualified as a Chartered Accountant in 2000.   Outside of work, Beverley’s favourite place is the beach, enjoying a walk along our beautiful North East coastline. Ideally, she would be joined by a canine companion and has recently started a campaign for her own office dog! 

To get in touch please e-mail beverley.howells@torgersens.com.