What is CGT 60-day reporting?
When you sell a UK residential property and there is Capital Gains Tax to pay, you must report the sale to HMRC and pay the tax within 60 days of completion. Late reporting can lead to penalties and interest, so involve your accountant before the sale completes.
Read more in our guide: Capital Gains Tax when selling rental property
Key facts at a glance
| Item | Detail |
|---|---|
| Who must report | UK residents selling UK residential property with CGT to pay; non-residents selling any UK property or land, even with no tax due |
| Deadline | 60 days after completion (30 days for completions between 6 April 2020 and 26 October 2021) |
| How | HMRC's online Capital Gains Tax on UK property service, using a Government Gateway account, or through an agent |
| Payment | Estimated CGT is due by the same deadline |
| Late filing penalties | £100, rising after 6 and 12 months (the greater of 5% of the tax or £300 each time) |
| Late payment | Interest from the deadline, plus penalties of 5% after 30 days, 6 months and 12 months |
| Not needed when | No tax is due, for example the gain is covered by losses, the annual exempt amount or Private Residence Relief |
How the 60-Day Rule Works
Since April 2020, Capital Gains Tax on UK residential property can no longer wait until your Self Assessment return. You must file a separate UK property return and pay an estimate of the tax within 60 days of completion. The gain still belongs to the tax year in which contracts were exchanged, but the 60-day clock runs from completion.
The return asks for the sale and purchase details, allowable costs, any reliefs and an estimate of your income for the year, so that the right mix of 18% and 24% can be applied. If you also file Self Assessment, you include the gain there and the tax already paid is credited, with any balance due or refunded.
Step by Step
- Before exchange: give your accountant the purchase completion statement, invoices for improvements and an estimate of your income for the year.
- At exchange: confirm the tax year of disposal and agree who will prepare each report.
- On completion: your solicitor sends the completion statement showing the sale price and costs.
- Within 60 days: create or use your Capital Gains Tax on UK property account, file the return and pay using the payment reference it gives you.
- After the tax year: include the gain on your Self Assessment return; amend the property return if the figures change.
60-Day Reporting on a Portfolio Sale
- Each completion starts its own 60-day period. A portfolio that completes in stages may need several returns, and later returns take account of gains already reported in the same tax year.
- Joint owners each file their own return for their share.
- Trustees and personal representatives must also report. A limited company does not; it pays Corporation Tax on its gains instead.
- Hold back enough of the proceeds to pay the tax. Lenders are repaid on completion, so on a highly geared portfolio the net cash can be much smaller than the gain.
- A loss on one property can reduce the tax shown on a later return in the same year, but you cannot reclaim tax already paid through the 60-day service until the Self Assessment return or an amendment.
A Worked Example
A landlord exchanges on a house on 10 February 2027 and completes on 3 March 2027. The gain falls in 2026 to 2027 and the 60-day report and payment are due by 2 May 2027. Their Self Assessment return for 2026 to 2027, due by 31 January 2028, also includes the gain, and the tax paid in May is set against the final bill.
Common Mistakes
- Assuming the gain can wait for the January return.
- Leaving it to the last week: setting up the HMRC account and gathering old purchase papers takes time.
- Forgetting that non-resident sellers must report every UK disposal, even at a loss.
- Not telling your solicitor and accountant about completions in the same year, so later returns use the wrong rate.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
When you sell a UK residential property and there is Capital Gains Tax to pay, you must report the sale to HMRC and pay the tax within 60 days of completion. Late reporting can lead to penalties and interest, so involve your accountant before the sale completes.
If there is Capital Gains Tax to pay on a UK residential property, you must report the sale and pay the estimated tax within 60 days of completion.
Yes, if you are in Self Assessment. You include the gain on your return and the tax already paid through the 60-day service is taken into account.
UK residents do not usually need to file a 60-day return if no tax is due, for example where the gain is covered by losses, the annual exempt amount or Private Residence Relief. Non-residents must report all UK property disposals.
HMRC charges an initial £100 late filing penalty, further penalties after 6 and 12 months, and interest and late payment penalties on any tax paid late.
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