CGT Residential Property Loss & 60 days reporting

Hi, I need a bit of help in understanding CGT Reporting 60 days rule. Do we have to do the CGT Declaration and report within 60 days even if we have made a loss on residential property? Your help will be much apprecited. Thank you

Hi,

If you are UK resident, you do not need to report a loss for UK residential property. If you are not UK resdient, you need to report the sale whether it is a gain or a loss.

Report and pay your Capital Gains Tax

Thank you.

Hi Please could you clarify HMRC's view on the following position: - Client disposes of a qualifying FHL business with a gain of c.£190,000 in Sep 24 - client intends to claim BADR so 10% tax - In Jul 24 client made a loss on portfolio disposals of £294,000 - Prior to Sept 24, the client has also made disposals of other investments with gains exceeding £300,000 which will be subject to CGT at 20% At the due date of the 60-day CGT return, the client knows they will utilise the portfolio loss against the other gains to get tax relief at 20%. However, by my reading of HMRC guidance (please let us know if we have missed further guidance on this?), the client could offset the losses against the BADR gain to remove the requirement to submit a 60-day CGT return and avoid paying the tax on account as the only criteria is that the loss took place before the UK property disposal. Of course, utilising losses against residential property gains would normally be the most beneficial position and therefore there would be no change when the self assessment tax return is submitted, but that would not be the case here as the losses will be used against gains taxable at 20%, not the BADR gain. If the client were to follow this reading of the guidance, would HMRC seek to recover late payment interest or filing penalties from the due date of the FHL’s 60-day CGT return, or are you free to allocate losses one way for the 60-day CGT return, and another way for self assessment? We look forward to hearing from you. For and on behalf of Verinder Powell Associates Ltd

Hi,
Please refer to CG-APP18-260 - Part 2 - Submitting returns through the CGT on UK Property Account: Complex and Miscellaneous Scenarios section 2.6.6
Thank you.