Individuals have until 31 January 2021 to declare profit made from selling a UK residential property during the 2019-20 financial year, according to HMRC.
The profit must be declared through a self assessment tax return, however only applies if the property was not the individuals main home.
Under new rules, which came into place on 6 April, there have been changes to how customers declare and pay capital gains tax.
Number of residential transactions up by 8.1%
UK residents who sell a residential property in the UK, which is not their main home and make a profit on the sale must use an online service to inform HMRC, and then pay the tax due within 30 days of completion.
However, non-UK residents disposing of UK land and property must use the online service whether there is profit or not.
The new rules affect landlords or property developers selling on part of their residential property portfolio, or UK residents who sell a residential property that is not their primary home.
Karl Khan, interim director general for customer services at HMRC, said: “The 2019-20 tax year is the last year UK residents will be required to pay the capital gains tax for the sale of properties as part of the self assessment process and we want to make sure they are aware of the new requirements.
“We’re making it easier for customers to pay any tax that is owed.
“UK residents, including property developers and landlords, should now use the online service to make any capital gains tax declarations immediately after selling a residential property.”
Looking to the 2020/21 financial year, customers will still be required to inform HMRC of any capital gains tax liabilities on their self assessment tax return, however any payments that have already been paid will not count towards their annual tax return bill.
Customers will pay tax on any profit above their tax-free allowance when they sell most personal possessions worth over £6,000, apart from their car, their main home if they have let it out or used it for business, shares and business assets.