If you dispose of a property that is not your home (e.g. through sale or gifting) you may have to pay Capital Gains Tax on any profit you make.

Examples of property include:

• buy-to-let properties
• business premises
• land
• inherited property

The rate of tax will be based on your total income for the year, and the nature of the asset you are disposing of. You may be eligible for a tax free allowance of up to £12,300. 

Whilst circumstances can vary, you do not usually need to pay tax on gifts to your spouse or civil partner or a charity.

You may also be eligible for tax relief if the property was your main residence for a period of time, or is a business asset.

The deadline for reporting Capital Gains Tax on land and property transactions changed for the 2020/21 (current) tax year.

Under the new rules, you must now notify HMRC of any gain and tax due by using the the Capital Gains Tax on UK property service within 30 days of the sale. Previously you would have simply reported the gain on your next tax return.

In order to access the service you will need:

• a Government Gatweay user ID and password (this will be required even if you plan on asking your accountant to submit the claim on your behalf)
• calculations for each gain or loss that needs to be reported
• information regains the purchase and sale costs
• information such as reliefs you may be entitled to

Any tax owed to HMRC must be paid within 30 days of the sale. Failure to do so could result in fines and penalties.