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How do I report my capital gains when I am not resident in the UK?

22nd August 2017

If you are a non-resident individual, company or trust and you have disposed of a residential property in the UK on or after 6 April 2015, you will need to report that disposal for the purposes of non-resident capital gains tax (NRCGT).

The deadline for reporting the disposal is 30 days from the date of completion. This is taken as the date when the property belongs to the new owner.

There are two types of vendors in this situation:

• Those who are not registered with HMRC
• Those who are registered with HMRC (for individual Self Assessment, Corporation Tax, or the Annual Tax on Enveloped Dwellings)

If you are not registered with HMRC, your NRCGT will also be payable within 30 days after the completion date. However, if you’re already registered with HMRC you can opt to pay the tax on the normal due date of your tax return. You then need to report just the transaction (on an NRCGT return) within 30 days of the completion.

The 30 days rule is strict. Failure to submit the NRCGT on time will see you fall under the same penalty regime as for late-filing of a Self-Assessment tax return; £100 for one day late, £300 if 6 months late, and a further £300 if 12 months late.

Those vendors who are not registered with HMRC and fail to pay the NRCGT on time will be charged £10 a day if the return is filed between 3 and 6 months late. If they file the return up to 12 months late however, then the penalties will be the greater of 5% of the tax due and £300. All late filing penalties can be appealed and HMRC may cancel them if the taxpayer has a ‘reasonable’ excuse.

“This information is taken from the weekly Tax Tips, published by the Tax Advice Network, for which you can subscribe at www.TaxAdviceNetwork.co.uk”