Capital Gains Tax on Sale - reporting how to

Advice2017

Hi all, I've recently sold a buy to let property and need to do CGT return. Looking for some advice on this pls if someone can help? I don't have an accountant. It's always been a buy to let, so no residency periods to claim etc.

I think I need to submit the return and make the tax payment within 60 days of completion of the sale.

I normally do annual tax returns for the rental income myself, so already have a Government Gateway log on.  Do I just send submit the CGT return via that same log on?  Does the system do the calculation for you, if you input the figures, similar to a tax return?

Any guidance on making the return would be really helpful. I think I know the sale and purchase costs which I am allowed to include/exclude from the calculation and the £3,000 annual exemption. I believe no mortgage interest payments are considered, as they have gone into old annual returns as an expense (when these were allowed).

The difficulties I have are how to estimate what other income I will have for this tax year (to make the calculation as either a lower or higher rate tax payer), because at present I am also employed (PAYE) but might cease working before tax year end (April 2026).  Should I just over-estimate my earned income (basing it on a full normal year) and if this results in a higher CGT bill, will I definitely be able to correct this later and claim a refund of any overpayment?  Is there a timeframe for claiming a refund? I'm thinking it would be better to overpay than underpay, in case there are penalties/interest to pay on an underpayment?  

Also, presumably I need to do an estimate of savings interest from the net sale proceeds whilst they are in savings accounts?

Also, some of the income and expenses I have to include on my annual return, (such as rental income, electrical test and EPC costs) will now fall under next year's return, 2025-2026 - will I still be able to submit these figures in that later tax return, even though I have now sold the property and will by that time have submitted this CGT return and paid the CGT?

Bit out of my depth, so if anyone can offer guidance that would be great! Thx in advance!

anselld

It is a separate account but uses the gateway login …
   https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Yes, any correction of high/standard rate split will be updated in the subsequent tax return and you can still declare income/expense in that return up to the date of sale.

35har1old

anselld said:

It is a separate account but uses the gateway login …
   https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Yes, any correction of high/standard rate split will be updated in the subsequent tax return and you can still declare income/expense in that return up to the date of sale.

Will need to be recorded again in your annual return