Tax and selling a BTL

[Mounjaromiracle]

I've just sold a house which I rented out for a few years always completing a self assessment after the end of the tax year and before the January deadline. However, when you sell as asset which is subject to capital gains you need to do a tax return within 60 days rather than at the end of the tax year but I'm confused as to how to do this since I don't have my P60 for this year so can't provide accurate figures for my PAYE income. I'm a lower rate tax payer. Has anyone been in a similar situation and can offer some advice please 🙏

I think that you have to do a special return within 30 days not your actual annual tax return.

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Sorry 60 days

You need to do the cgt return within 60 days. In doing that you have to give info which allows HMRC to estimate your income tax and cgt tax. They calculate an amount of cgt you have to pay for the property sale based upon this. When you do your actual tax return by 31 Jan you give all your actual details for the year, plus what you paid in cgt, and any correction is made. Think of the payment you have to make in 60 days as a payment on account of the cgt.

but do do the cgt return. They will fine you if you are late!

Thanks so much for that explanation which makes sense- really appreciate it. I assumed it was the full tax return with the CGT bit added not just an interim estimate which I can do.

That's my Sunday sorted😏

You will also need to register separately for a CGT return.

Top tip: Keep all of your figures and workings from the calculation handy, ready for when you do your main tax return.

I had wrongly expected that when I did my main tax return six months later, it would ask about the CGT and I could just give them the figures straight off the CGT return, or better yet that perhaps I could just refer to the CGT return I had done earlier and it would get linked together automatically.

Nope. On your main return you will have to tell them about the capital gain all over again. It uses slightly different terminology, and it's broken down in a slightly different way, so you can't just copy the figures across.

The actual tax owed is the same regardless, so no problem there.

That's brilliant advice thanks. I assumed it would populate from one to the other and I'd just need to confirm the figures not re input. Thankfully when I did it on Sunday I kept all my workings out so hopefully it won't be too tricky come next April.