Reporting And Paying Tax On UK Residential Property Gains

Reporting And Paying Tax On UK Residential Property Gains - Northwood Accountants

Reporting And Paying Tax On UK Residential Property Gains

The residential property industry in the United Kingdom is a lucrative field to invest in. Many individuals who purchase and sell properties for gains can enjoy significant tax gains and exemption from capital benefits tax. However, for those purchasing and selling property within the United Kingdom, there are certain requirements that need to be met. This article discusses how you can succeed in reporting and paying tax on UK residential property gains.

For those of you who have made profits from the sale of a United Kingdom residential Asset, They may get concerned about the best way to report and pay taxes on those gains. The following is a short explanation of what you need to know.

Report and Pay Tax for a Property You Are Selling

If you are planning to sell your UK residential property (usually a house or flat) and make a gain, you will need to report it and pay tax on it. Why? Because of the Capital Gains Tax (CGT) rules.

Look out for: CGT is a self-assessment tax, which means you decide whether to pay tax on the gain. You get a tax-free allowance each year, and for most people, it is around 11,700 dollars for the year. If you do not have any other gains to report in that year, you will not have to pay any tax. This means that investors who have not declared their gains until now may face severe fines, and even criminal charges.

The Law Makes It Compulsory That Property Owners Must Declare Their Gains

A new law passed by the famous House of Commons makes it a must for property investors to declare their benefits, even if they do not make any. From April 2019 (when the new tax year got introduced), property investors will have to file declarations after every three years. This is not just for individuals who possess one or two properties – there are no exemptions for small scale investors; it applies to everyone.