Paying capital gains on house sale

ipman786

So I will be shortly selling my 2nd home and will be paying capital gains.
Is the onus on myself to pay capital gains or will my solicitor take care of this for me?
Thanks for any answers/replies.

Cliveman_Pieman

You have to declare it via self-assessment. If you exchanged before 6th April, it is due 31/01/2018. If you exchanged on or after 6th April, it is due 31/01/2019.

G_M

Cliveman_Pieman wrote: »

You have to declare it via self-assessment. If you exchanged before 6th April, it is due 31/01/2018. If you exchanged on or after 6th April, it is due 31/01/2019.

Not quite.

Yes, the onus is on the tax-payer to declare it, but a one-off CGT liability can be declared at any time .

There are two ways to declare the CGT liability:

• annually through a Self Assessment tax return
• straight away using the Report Capital Gains Tax online service.

If you do not usually complete a SATR (ie you pay all your tax via PAYE or similar) you can probably use the 2nd option, which is much easier.

Cliveman_Pieman

G_M wrote: »

Not quite.

Yes, the onus is on the tax-payer to declare it, but a one-off CGT liability can be declared at any time .

I never ever recommend people volunteer their information to HMRC before they have to, unless people are literally hopeless with money having capital for an extra 20 months (in this case) is infinitely preferable to handing it over needlessly to the state.

G_M

Good advice.

I was just making the options clear.

saajan_12

Cliveman_Pieman wrote: »

I never ever recommend people volunteer their information to HMRC before they have to, unless people are literally hopeless with money having capital for an extra 20 months (in this case) is infinitely preferable to handing it over needlessly to the state.

Depending on the size of CGT liability, the benefit of holding on to the money for 20months may be limited, whether as contingency funds or to generate a return, especially given current low interest rates. The potential penalties for late / lack of payment are likely higher.. not just if you're 'hopeless with money', but its easy to forget nearly two years later to keep it reserved for the tax bill and pay per the deadlines.

AnotherJoe

What do you mean by "my 2nd home"? Do you live there?