60-Day CGT Reporting for UK Property

1. What the 60-Day Rule Is

Before April 2020, Capital Gains Tax (CGT) on the sale of residential property was reported and paid via the normal self-assessment return, months or even years after completion. From April 2020 HMRC introduced a real-time reporting regime requiring a separate UK Property Disposal Return within 30 days of completion. From 27 October 2021 onwards the deadline was extended to 60 days, and that is the rule in force today.

The return is filed through a dedicated HMRC "Capital Gains Tax on UK Property" service. An estimate of the CGT due is paid at the same time. The annual self-assessment return remains required if you normally file one; the 60-day return is an extra step, not a replacement.

Run the numbers on your disposal with our Capital Gains Tax Calculator before completion so the 60-day payment is grounded in a proper estimate, not a guess.

2. Who Has to File

• UK-resident individuals, trustees and personal representatives disposing of UK residential property where a CGT liability arises.
• Non-UK residents disposing of any UK land or property (residential or commercial, direct or indirect, liability or nil) must file within 60 days regardless of whether a liability arises.
• Landlords selling a buy-to-let property: the most common trigger.
• Second-home owners selling a holiday home or inherited property.
• Partial PPR cases: a main residence that has also been let for part of the ownership period, so private residence relief does not fully cover the gain.

3. When a Return Isn't Needed

A 60-day return is not required (for UK residents) if no CGT is payable. Common reasons:

• Private residence relief covers the entire gain (main home throughout ownership).
• The gain is within the annual exempt amount (£3,000 for 2026/27).
• The disposal is at a loss; no gain, no filing obligation.
• Inter-spouse transfer at no-gain/no-loss.
• The property is commercial (UK residents selling UK commercial property report only through self-assessment; non-residents still file within 60 days).

4. How the Calculation Works

The gain is sale proceeds minus original cost minus allowable expenditure minus any reliefs. Allowable expenditure includes:

• Acquisition costs (SDLT paid, legal fees, survey).
• Disposal costs (estate agent, legal, EPC).
• Capital improvements (new kitchen, extension, loft conversion). Not repairs or redecoration, which would have been revenue deductions during ownership.

The net gain is then reduced by the annual exempt amount (£3,000 in 2026/27) and taxed at the residential property CGT rates. For 2026/27 these are 18% for any gain falling into the basic-rate band and 24% above it. The calculation must estimate the taxpayer's total income for the year to work out the marginal rate, which is why the amounts reported at 60 days are estimates, and why the self-assessment return may adjust them.

Where the disposal includes any private residence relief, letting relief (in the narrow post-2020 form), or business asset disposal relief (rare for residential), those reliefs are claimed on the return.

5. The Data You Need to Gather

60 days disappears quickly once completion lands. The documents you need at hand before exchange:

• Original purchase completion statement and SDLT return.
• Solicitor's fees, estate agent fees and other disposal costs (from the sale completion statement).
• Invoices for every capital improvement: extensions, new bathrooms, new kitchens, structural work. Repairs don't count; only genuine capital enhancements.
• Dates of occupancy if any period was a main residence (for PPR apportionment).
• Dates of letting if the property was ever rented out.
• Estimate of total annual taxable income for the tax year to determine marginal CGT rate.
• Government Gateway credentials, or a request to your agent to file on your behalf using the CGT on UK Property "PPDCGT" agent authorisation.

For landlords with a portfolio, we recommend building a "CGT-ready" folder per property: original completion, SDLT, improvement invoices, and a running log of occupancy changes. Doing this years in advance of a sale turns a 60-day scramble into a 60-minute exercise.

6. How It Interacts with Self-Assessment

If you already file a self-assessment return, the 60-day return is effectively a payment on account and an early declaration. The disposal is also reported on the CGT pages of the SA return. HMRC reconciles the two.

If later events (other disposals, capital losses, a change in income level) mean the final CGT liability is different from what was paid at 60 days, the SA return picks up the adjustment. Over-payments are refunded, under-payments are added to the balancing payment due by the following 31 January. If a UK resident taxpayer does not normally file a self-assessment return and has no other need to do so, the 60-day return can be the only filing required.

7. Penalties for Late Filing

• Initial penalty: £100 fixed, the moment you miss the 60-day deadline.
• Three months late: daily penalties of £10/day, up to £900, on top of the £100.
• Six months late: further penalty of £300 or 5% of the tax due, whichever is greater.
• Twelve months late: a further £300 or 5% of tax due, with potential for higher percentages if HMRC concludes information was deliberately withheld.
• Interest on unpaid tax accrues from the 60-day deadline regardless of whether the return itself is filed late.

Our property tax service includes preparing and filing every 60-day CGT return for client disposals as standard, so it's one fewer deadline for you to manage around a sale.