When must I report a residential property sale to HMRC?

If you sell a UK residential property on or after 27 October 2021 and there is a capital gain (after deducting your annual CGT exemption and any relief), you must report the disposal and pay any CGT owed within 60 days of the completion date. Completion is when the property ownership legally transfers to the buyer — usually 1-4 weeks after exchange of contracts. The 60-day clock starts from the day after completion, not from exchange. If completion falls on a weekend or public holiday, the first day counted is the next working day.

Does the 60-day rule apply to my main home?

If your main home is fully covered by Private Residence Relief (PRR), there is no CGT owed and no 60-day reporting requirement. However, if you have any gain after applying PRR (for example, because you rented part of the property or it was not always your main home), you must report and pay within 60 days even if the taxable amount is small. The reporting requirement applies whenever there is a chargeable gain — not only when the full gain is taxable.

How do I report a property gain within 60 days?

Use the HMRC online service for reporting and paying CGT: log in to your Government Gateway account, select 'Report and pay Capital Gains Tax on UK property.' You will need: completion date, sale price, purchase price, improvement costs, selling costs (solicitor fees, agent fees), and any reliefs claimed. HMRC will calculate the tax and show you a payment reference. You can also use your Self Assessment return to report property gains, but you must STILL pay any tax owed within 60 days of completion — you cannot wait until the January 31 Self Assessment deadline.

What is the penalty for late reporting of a property disposal?

HMRC charges an automatic late filing penalty of £100 if the 60-day report is submitted late. If it is more than 6 months late, an additional £300 penalty (or 5% of the tax due, whichever is higher) applies. More than 12 months late triggers a further £300 (or 5% of tax). Interest on unpaid tax accrues daily from the 60-day deadline regardless of when you file. Even if you have no tax to pay (because the gain is covered by your annual CGT exemption), you may still receive a penalty notice if HMRC issues a formal requirement to report.

CGT 60-Day Property Reporting UK 2026 — How to Report and Pay Within 60 Days

Since October 27, 2021, UK residents who sell a residential property with a chargeable capital gain must report and pay the Capital Gains Tax (CGT) within 60 days of completion. This is a standalone reporting obligation separate from Self Assessment — even if you already file a Self Assessment return, you cannot simply include the property gain in your annual return and wait until January 31 to pay. The CGT must be estimated, reported, and paid within 60 days of the property completing.

Quick answer: Sold a UK residential property? 60-day clock starts the day after completion. Report via HMRC online property CGT service. Pay the estimated CGT at the same time. £100 automatic late filing penalty if you miss the deadline. Interest accrues on late payments. Applies to buy-to-let, second homes, inherited properties — NOT to fully PRR-exempt main homes.

Which Property Sales Trigger the 60-Day Rule?

Covered — must report within 60 days:

Buy-to-let residential property
Second homes or holiday cottages
Properties inherited and sold at a gain (gain over probate value)
Main home where PRR relief does not cover the full gain (e.g., partial letting, only some years as main home)
UK residential property sold by non-UK residents (even pre-dating October 2021 for non-residents — the 60-day rule applies from April 2015 for non-residents)
Shared ownership properties where you sell additional shares

NOT covered — 60-day rule does not apply:

Main home fully covered by Private Residence Relief
Commercial property (applies CGT but not the 60-day residential rule — gains go on Self Assessment)
Land with no building (not residential)
Transfers at no gain, no loss (e.g., between spouses)

How to Calculate the CGT Before Reporting

You will need to estimate your gain and tax before you can pay. Here is the calculation:

Item	Amount
Sale price (net of estate agent fees and legal costs of sale)	£XXX,XXX
Less: original purchase price	(£XX,XXX)
Less: allowable improvement costs	(£X,XXX)
Less: legal and survey costs at purchase	(£X,XXX)
Gross gain	£XX,XXX
Less: annual CGT exemption (2026: £3,000)	(£3,000)
Less: any applicable reliefs (PRR, letting relief, etc.)	(£X,XXX)
Taxable gain	£XX,XXX

CGT rates on residential property (2026):

Basic rate taxpayer: 18%
Higher rate (40%) or additional rate (45%) taxpayer: 24%

Example:

You sell a buy-to-let flat:

Sale price: £280,000 (after costs)
Purchase price: £185,000
Improvement costs: £12,000
Annual CGT exemption: £3,000

Gain: £280,000 − £185,000 − £12,000 = £83,000 Taxable: £83,000 − £3,000 = £80,000 Tax (24% higher rate): £80,000 × 24% = £19,200 — due within 60 days of completion.

Completing the 60-Day Report: Step by Step

Sign in to HMRC online services — use your Government Gateway account (create one if needed)
Navigate to: Report and Pay Capital Gains Tax on UK property
Enter the disposal details:
- Property address and completion date
- Sale price and purchase price
- Allowable costs (solicitor, agent, improvements)
- Any reliefs (PRR, letting relief, EIS deferral)
Provide income estimate for the tax year — HMRC needs your estimated income to determine your CGT rate (basic vs higher rate)
Review the calculated gain and estimated tax
Pay immediately — HMRC provides a payment reference. Pay by bank transfer, debit card, or corporate credit card.

After submitting, you receive a reference number. Keep it for your records and to cross-reference on your Self Assessment return.

Interaction with Self Assessment

If you file a Self Assessment return, you must also include the property disposal on your Self Assessment for the full tax year in which the disposal occurred — even after the 60-day report.

Two-step process:

60-day report and payment within 60 days of completion (estimate-based)
Self Assessment return at year end (January 31 deadline) — report the final, correct gain. Any overpayment is refunded; underpayment triggers a balancing payment.

For non-Self Assessment filers: If you do not normally file Self Assessment and the property disposal is your only reportable event, the 60-day report satisfies your obligation. You do not need to also register for Self Assessment solely for this disposal.

Common Mistakes to Avoid

Confusing exchange with completion: The 60-day clock starts from completion, not from exchange of contracts. Exchange can be weeks or months before completion.
Forgetting allowable costs: Solicitor fees, survey costs, estate agent commissions, and the cost of genuine improvements (loft conversion, new extension) are all deductible. Routine maintenance and repairs are not.
Not accounting for your annual exemption: Everyone has a £3,000 CGT annual exemption for 2025-26. This reduces your taxable gain.
Underestimating income for the rate: Using the wrong tax rate (18% vs 24%) leads to underpayment and interest charges.
Overlooking PRR partial relief: If the property was your main home for some years, a portion of the gain may be PRR-exempt. Calculate this before reporting.

Non-UK Residents Selling UK Property

Non-UK residents selling UK residential property face a similar 60-day reporting requirement, with slightly different rules:

Applies to disposals after April 6, 2015
Must report even if the gain is a loss
UK non-resident CGT (NRCGT) rates are the same as UK resident rates: 18%/24%
Non-resident sellers should also file a Self Assessment return for the disposal year

Capital Gains Tax UK Guide — CGT rates, exemptions, and reliefs
Private Residence Relief Guide — when your main home gain is exempt
UK Taxes Hub — all UK tax guides for 2026
Self Assessment UK Guide — who needs to file and when

Missing the 60-day property CGT deadline is one of the most common mistakes among first-time property sellers. Mark your completion date immediately, begin gathering cost records the same day, and aim to report within 45 days to give yourself buffer. The online HMRC service takes approximately 30 minutes for a straightforward disposal.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy