Real Time Capital Gains Tax Service

The Real Time Capital Gains Tax Service is one of the two ways through which you can pay your Capital Gains Tax (CGT) bill.

Basically, if you sell an asset (property, shares, art, cryptocurrencies, etc.) for a profit, you have two options:

• You either file a Self Assessment tax return – by 31 January of the following tax year
• You use HMRC’s Real Time Capital Gains Tax Service – to report your gains and pay by 31 December in the tax year after you sold

What you need to know about the Real Time Capital Gains Tax Service

Starting from April 2020, all UK tax residents who sell residential property for a profit (not including your main home, of course) have to use the Real Time Capital Gains Tax Service.

You must:

• Report and pay within 60 days of selling a property from 27 October 2021 onwards
• Report and pay within 30 days of selling a property

When you use the real time service you:

• Will get a payment reference number instead of a UTR
• Won’t have to file a Self Assessment tax return every year – unless your income changes significantly during the year (there are different CGT rates if your income is under or over £50,270), or if you have another reason to file a tax return (for example, you earned rental income)