In the realm of property transactions, realising a chargeable gain on the disposal of a UK residential property necessitates immediate action from the individual involved. They are required to report the gain to HM Revenue and Customs (HMRC) within a 60-day window post-completion, and concurrently, ensure the capital gains tax due is paid within the same timeframe.

Traditionally, the process has predominantly been carried out online, requiring taxpayers to establish a Capital Gains Tax on UK Property Account if they haven’t done so already. However, HMRC, to be more inclusive and responsive to public feedback, introduced a paper version of the return, piloted from February 2023.

The pilot, initially set for a four-month duration, saw an extension through to the end of September 2023. Throughout this period, HMRC meticulously reviewed the utilization of the form to ascertain its effectiveness in catering to taxpayers’ needs.

The paper forms, accessible for download on the Gov.uk website at www.gov.uk/government/publications/report-capital-gains-tax-on-uk-property, are accompanied by comprehensive notes to aid completion. It’s crucial to note that this option is not positioned as a replacement to the online service; rather, it serves specific scenarios. It is tailor-made for taxpayers who:

  • Lack internet access
  • Have already submitted a Self Assessment tax return for the identical tax year to which the report corresponds
  • Qualify as secure or Public Department 1 taxpayers, traditionally not filing returns online

Additionally, the paper form extends its applicability to agents managing solely this report, corporate trustees, and non-resident trustees with no capital gains tax liability.

Upon opting for the paper return route, individuals are guided to download, print, and meticulously complete the form, subsequently dispatching it to the HMRC at the provided address. Post-submission, HMRC reciprocates by sending the taxpayer a unique 14-digit reference, commencing with an X, which becomes crucial for the ensuing tax payment process.

This initiative underscores HMRC’s commitment to fostering a user-friendly tax reporting environment, ensuring accessibility and convenience for all taxpayers, irrespective of their digital proficiency or specific circumstances.

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