Most people assume any tax on selling a property is dealt with through the normal Self Assessment return, months later. For UK residential property, that assumption can be an expensive mistake. Since 2020 there has been a separate, much tighter deadline, and it catches far more sellers than people expect.
The 60-day deadline
If you dispose of UK residential property and there is a Capital Gains Tax (CGT) liability, you must report the gain and pay the tax due within 60 days of completion. This is done through a standalone "Report and pay CGT on UK property" return (often called the UK Property Disposal return), separate from, and usually well ahead of, your annual Self Assessment.
Who does this actually catch?
The 60-day rule bites whenever a residential disposal produces a taxable gain that is not fully sheltered by relief. In practice that means:
- Buy-to-let landlords selling a rental property;
- Owners selling a second home or holiday home;
- Beneficiaries who inherit and then sell a property that has risen in value since the date of death;
- Anyone selling a former home that wasn't their main residence for the whole period of ownership.
If the property was your only or main home throughout, Private Residence Relief usually removes the gain entirely and no 60-day return is needed. The trap is the in-between cases, a home let out for a few years, or a property that was once your residence and later wasn't.
The current rates and allowances
For disposals from 30 October 2024, residential property gains are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. The rate depends on your total income plus the gain in the tax year, so a large gain can push part of itself into the 24% band. The annual exempt amount is £3,000, the first £3,000 of gains across the year is tax-free. You can also deduct buying and selling costs (legal fees, stamp duty paid on purchase, agent's fees) and the cost of capital improvements.
Non-residents are in scope too
Non-UK residents must report disposals of UK land and property within the same 60-day window, and, unlike UK residents, they must file a return even where there is no tax to pay or the property is sold at a loss. This regularly surprises overseas owners.
The penalties for missing it
Miss the 60-day deadline and HMRC charges a late-filing penalty, with further penalties and interest on the unpaid tax the longer it runs. Because completion dates are fixed and often known weeks in advance, these penalties are entirely avoidable with a little planning, the estimate should be prepared before completion, not after.
Plan the disposal, don't just report it
The 60-day return is a reporting deadline, not a tax-planning exercise, the planning has to happen first. Timing a disposal across tax years, using both spouses' allowances and rate bands, and capturing every allowable cost can materially change the bill. Our tax planning and Self Assessment teams handle the calculation, the 60-day filing and the year-end reconciliation together. If you have a sale completing soon, speak to us early, ideally before contracts exchange.