Whether you need to report the sale of your home to HM Revenue and Customs (HMRC) depends on the specifics of your situation:

  1. No Gain or Full Private Residence Relief (PRR)
    • If the entire gain from the sale of your home is covered by Private Residence Relief (PRR), meaning you don’t have any taxable gain, you generally do not need to report the sale to HMRC.
  2. Partial or No Private Residence Relief (PRR)
    • If part or all of the gain from the sale of your home is not covered by PRR, then you must report the sale to HMRC. This situation can arise if:
      • The property was not your main residence for the entire period of ownership.
      • Part of the property was used exclusively for business purposes.
      • The property includes grounds exceeding the permitted area.
      • There are other reasons that PRR does not fully apply.
  3. Reporting Requirement
    • If you need to report the sale, you must do so by completing the Capital Gains Tax section of your Self Assessment tax return for the tax year in which the property was sold.
    • You must report and pay any CGT due within 30 days of the completion of the sale using the ‘real-time’ Capital Gains Tax service.

Key Considerations

  • Documentation: Keep detailed records of the sale, including the purchase price, sale price, and any allowable expenses (e.g., legal fees, improvement costs).
  • Professional Advice: If you’re unsure whether you need to report the sale or how to calculate the gain, consulting with a tax advisor can help ensure compliance and accurate reporting.

By understanding these requirements, you can ensure you meet your obligations and avoid potential penalties.