Capital Gains Tax (CGT) 60 Day Disclosure

We have put together this helpful guide to outline the information and supporting documents required in order to calculate any Capital Gains Tax (CGT) due for a 60 day disclosure following the sale of property (this only applies to UK property sales).

1. Property details

Full property address and postcode.
Type of property — house, flat, land, mixed-use, etc.
Whether it was jointly owned and, if so, by whom together with your percentage of ownership.

2. Purchase/acquisition

Date you acquired it
Purchase price/value (including completion statement from your solicitor)
Stamp Duty Land Tax paid
Solicitor/conveyancing fees
Estate agent or other acquisition costs
Any other costs directly connected with acquiring the property
If inherited: date of death and probate/market value at that date
If gifted/transferred to you: details of the transfer and market value

HMRC specifically requires the acquisition date and value, together with relevant buying costs for the purpose of the CGT calculation.

3. Sale/disposal

Date contracts were exchanged and completion date (including completion statement from the solicitor)
Sale price
Estate agent fees
Solicitor/legal fees
Other costs directly associated with the sale

4. Capital improvement expenditure

This is particularly important if the property was owned for several years. You will need to gather invoices/receipts for qualifying improvements, such as:

Extension
Conversion
New kitchen/bathroom where it forms part of a qualifying improvement
Structural alterations
Other expenditure that enhanced the property rather than simply maintaining it

Normal repairs and maintenance costs are generally not deductible as capital improvement costs. However, qualifying improvement
expenditure may be deductible when calculating your capital gain, in accordance with HMRC guidance.

5. How the property was used

For each period of ownership, you will need to confirm:

Was it your main residence?
The dates you lived there
Any dates it was empty (and reason for the property being empty e.g working abroad)
Was it ever used as a second home/holiday home by yourself?
Did you let it out to tenants? If so, you’ll need to provide the dates it was rented
Did you use part of it for business? If so, what percentage of the building was used for this purpose?

This information is important because Private Residence Relief and, where applicable, Letting Relief may significantly reduce the amount of gain subject to Capital Gains Tax.

6. Your wider tax position

The following will also need to be provided:

Your income or expected income (other than capital disposals) for the relevant tax year
Any capital losses brought forward
Any capital losses arising earlier in the same tax year
Whether you’ve already used your annual CGT exemption
Details of any other property/asset disposals

This above is important because the rate of CGT you pay may depend on how much of your basic-rate tax band remains after
taking your taxable income into account.

Download Our Free Guide

We’ve put together a downloadable PDF version of this checklist, which you can save and refer back to when gathering your documents.

Download the CGT Property Disclosure Guide here

Need help with a property sale CGT disclosure?

If you’ve recently sold a UK property and need support with your 60-day CGT disclosure, we’re here to help. Get in touch with the team at Aspreys and we’ll guide you through the process from start to finish.

[email protected] I 01932 485 325 I aspreysuk.com