HMRC account set up for Capital Gains Tax

We will talk you through how to set up your HMRC account, so you are ready to submit your capital gains liability to HMRC.

There have been some changes to the rules since 6th April 2020- individuals who are due to pay capital gains tax on UK residential property disposals have 30 days after the completion date to report and pay HMRC the tax. The reason it is different is that post 6th April 2020 resident’s property must be reported within your personal capital gains tax on UK property account.

We will need to obtain authorisation (even if we already have authorisation to your self-assessment tax return) In order for us to submit this as your accountants. To set up an account you will need to have a Government Gateway user ID if you don’t already have one you can create one through this link: https://www.tax.service.gov.uk/capital-gains-tax-uk-property/start/report-pay-capital-gains-tax-uk-property

On this page, if you scroll down and click the ’START’ button it will ask you to sign in. If you haven’t created an ID in the past you can select ‘create sign in details’ and follow the instructions. HMRC will need to verify your identity to be able to create the ID, this can be done by entering information from your most recent P16 or using your UK passport.

Once you sign in you will be asked to enter an access code which will be sent to your phone number. You can then continue onto the next page which shows your contact details and asks you to confirm your details. Once you have your UK property account set up the next step is to give us the authorisation to file your returns. To do this we will need your account number and UK postcode; we will email you a link and ask you to authorise us through this. Once you have accepted this the process is complete and you can now report to HMRC under the new rules.

If you’re planning to sell a UK residential property soon, for example at buy-to-let. You should get in contact with us as soon as possible so we can make sure you have your account set up and we have authorisation.

If you’re a current client of ours please contact your client portfolio manager and they will be able to help. If you’re not yet a client of ours but would like some help please do get in contact with us.

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You can click this link to visit our YouTube video on this topic:

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