When should you submit a 60 day CGT return by post?

As you may know, when you sell property that isn’t your main residence you normally need to calculate, report and pay any Capital Gains Tax you owe within 60 days. If you don’t, you can get hit with both penalties and interest. While most people submit their 60 day CGT return online, there are some situations in which you’ll need to complete and post a paper form. HMRC has just updated its guidance on when you should submit a 60 day CGT return by post. We look at this in more detail in this blog post.

When do I need to complete a 60 day CGT return?

In most situations, if you sell property that’s not your main home, you need to report and pay CGT. For example, if you sell buy-to-let properties, business premises, land or inherited property, you’ll normally be liable for CGT.

There are some exceptions. For example, if your gains are less than your CGT tax-free allowance, you don’t need to report them. You may also qualify for certain CGT reliefs. If you’re a THP client, one of our accountants would be happy to advise you on this.

When should I report by post?

While it’s simplest to submit a 60 day CGT return online, there are certain times when you must complete a paper form.

According to HMRC’s new guidance, you need to submit a paper return if you:

• have already submitted a Self-Assessment Tax Return for the same tax year as your 60 day CGT return.
• you need to make changes to a paper form that you’ve already sent to HMRC.
• are an agent (such as an accountant) acting on behalf of a personal representative (PR) who uses a different agent to manage their own personal 60 day CGT returns
• are a corporate trustee
• cannot use the online service
• are a non-resident trustee who does not need to register the trust on the Trust Registration Service and does not have any CGT liability to pay
• are a personal representative who needs to amend a report which has already been sent to HMRC

If you need to amend a CGT return, you must fill in a paper form if you:

• are an appointee
• have power of attorney
• are acting for someone else in a similar legal capacity

You can fill in the relevant form here and then print it out. You then need to sign it and post it to HMRC along with any supporting evidence. HMRC will then send you a 14 digit payment reference starting with ‘x’. You then have 60 days to pay any CGT you owe from the date the reference number was issued.

When should I report online?

In all situations other than the above, you should submit a 60 day CGT return. You can do this via this page.

How do I pay CGT?

You can pay CGT online, via a bank transfer or by cheque. HMRC has published a full list of ways to pay here.

I need help with my 60 day CGT return

Calculating the CGT you owe within 60 days is often complex. For this reason, we offer a 48-hour fast track CGT service. This not only ensures your return is submitted on time – thus avoiding penalties – but we’ll also advise you on any legitimate ways you can reduce your CGT bill. To find out more, get in touch with the THP team today.