Tax Glossary

Real Time Capital Gains Tax Service

White Arrow
Last updated on:
March 17, 2024

The Real Time Capital Gains Tax Service is a method provided by HMRC for individuals to report and settle any Capital Gains Tax due on asset disposals within the same tax year of the sale. This system, introduced to streamline the process, requires users to report the sale of assets like property (excluding their main residence), shares, or other valuable items where Capital Gains have been realized.

From April 2020, UK tax residents selling a residential property that isn't their primary home must report the sale and pay the associated Capital Gains Tax within 60 days from the completion date. This adjustment, updated from 27 October 2021, aims to ensure timely tax payments and reporting.

Key aspects of the Real Time Capital Gains Tax Service include:

  • It provides an alternative to including such gains in a Self Assessment tax return, aiming for efficiency and convenience in tax payments.
  • Upon using the service, taxpayers receive a payment reference number, which differs from the Unique Taxpayer Reference (UTR) typically used in Self Assessments.
  • Utilizing this service absolves the taxpayer from filing a Self Assessment for that tax year, unless there are other income streams or significant changes that necessitate a return submission.

This service underscores HMRC's commitment to modernising tax administration, making it easier for taxpayers to comply with their obligations promptly.

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

Arrange your free initial consultation today.

Book Free Consultation
UK's best rated accountant 2021
Rated Excellent
5 Stars
on Trustpilot