Selling a UK Residential Property? Be Aware of the 60-Day Capital Gains Tax (CGT) Reporting Rule
If you sell or dispose of a UK residential property and Capital Gains Tax (CGT) is payable, you may be required to report the gain and make a payment to HMRC within 60 days of the completion date.
Missing this deadline can result in penalties and interest, making it essential to understand your obligations before completing the sale.
Who Needs to Report?
The 60-day reporting requirement generally applies to:
Individuals, trustees and personal representatives disposing of UK residential property.
UK residents and non-UK residents where a taxable capital gain arises.
Sales, gifts, transfers or other disposals of residential property that give rise to a CGT liability.
When is Reporting Not Required?
A 60-day CGT return is generally not required where:
- The property qualifies for full Private Residence Relief (PRR) and no CGT is payable.
- The disposal results in no taxable gain or a capital loss.
- The gain is fully covered by available capital losses or the Annual Exempt Amount, resulting in no CGT liability.
The property is not UK residential property.
| Event | Deadline |
|---|---|
| Completion of property sale | Day 0 |
| Submit UK Property CGT Return | Within 60 days of completion |
| Pay estimated CGT | Within 60 days of completion |
| Report again on Self-Assessment Tax Return (if required) | By 31 January following the end of the relevant tax year |
Important: The 60-day return is in addition to, not a replacement for, your annual Self-Assessment tax return where one is required.
Common Limitations and Considerations
Before calculating the gain, remember that:
The gain is calculated using the completion date, not the exchange date.
You can deduct allowable acquisition and disposal costs, including legal fees, Stamp Duty Land Tax (where applicable on purchase), estate agent fees and qualifying improvement costs.
Routine repairs and maintenance costs are not deductible for CGT purposes.
An estimated CGT liability must be paid within 60 days. Any adjustments can be made later through your Self-Assessment return.
Married couples and civil partners should consider ownership proportions and available reliefs before disposal.
Failure to report or pay on time may result in late filing penalties, interest and potential surcharges.
