Since April 2020, UK residential property disposals that result in a capital gain must be reported to HMRC within 60 days of completion. A payment on account of the estimated CGT is also due within that window. Many landlords are still unaware of this requirement, especially if their previous accountant handled everything through the annual self-assessment return. That was correct before April 2020, but it hasn’t been since. This client contacted us with just 8 working days remaining. They knew there was a gain but hadn’t organised their records. We prioritised the engagement: obtained the completion statement and purchase documents, reviewed a folder of improvement receipts against HMRC’s criteria for allowable enhancement expenditure, and separated genuine capital improvements (new boiler, rewiring, kitchen replacement) from routine maintenance (repainting, minor repairs). The distinction matters. Capital improvements that enhance the property beyond its original state are deductible from the gain. Routine maintenance and repairs are not — those are revenue expenses claimable against rental income. We identified approximately £15,100 in legitimate enhancement costs, reducing the taxable gain accordingly. The report was filed on day 57, and the payment on account was made. No penalties. The client is now set up for proper CGT reporting on future disposals.
