Disposal of a residential property can result in a tax bill, when it does this must be reported to HMRC within 60 days on a property disposal return (PDR). If this is missed, often it’s not possible to do retrospectively because a self-assessment return has been filed in the meantime. How can you fix this issue if you’re affected?
PDRs must be filed within 60 days of completion, and a payment on account of the tax must be made at the same time. A problem is now being reported as a number of taxpayers haven’t filed a PDR and the gains were instead reported on self-assessment tax returns. However, an electronic PDR cannot be filed once a self-assessment return is filed.
Filing a tax return does not displace the requirement to file a PDR, this is only the case where a tax return is filed before the 60-day deadline for the PDR passes. In reality, this is only possible for disposals where the date of exchange is close to the end of a tax year.
It has now been confirmed by HMRC that any outstanding PDRs should be filed using a paper return. If you have been affected by this issue you should contact HMRC to request this, or your accountant/tax advisor can do this if they hold a valid 64/8 for you.
