Selling a UK residential property? There’s one deadline that catches people out time and time again — the 60-day Capital Gains Tax (CGT) reporting rule.

Miss it, and you could face automatic penalties and interest, even if you fully intended to declare the gain later on your Self Assessment return.

Let’s break it down clearly.

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What Is the 60-Day Rule?

If you’re a UK resident and you sell or dispose of a UK residential property that results in Capital Gains Tax to pay, you must:

1. Report the gain to HMRC
2. Pay the estimated CGT
3. Do both within 60 days of completion

This is done through HMRC’s online “Capital Gains on UK Property” service — not through your usual Self Assessment alone.

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When Does It Apply?

The rule usually applies when:

• You sell a buy-to-let property
• You dispose of a second home
• You transfer property to someone other than a spouse
• You gift property (yes, gifts can trigger CGT)

It does not usually apply if:

• The property qualifies fully for Private Residence Relief
• There is no tax to pay
• It’s a transfer between spouses (no gain/no loss)

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The Costly Mistake

The most common mistake?

👉 Assuming it can just be reported on the next Self Assessment return.

It can’t.

Even if your tax return isn’t due until 31 January, the CGT report and payment are still required within 60 days of completion.

Miss the deadline and HMRC may charge:

• Late filing penalties
• Interest on unpaid tax
• Additional penalties if the delay continues

We regularly see sellers facing hundreds — sometimes thousands — in avoidable penalties.

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What If the Property Was Overseas?

If you’re UK resident and sell an overseas property, the 60-day UK property reporting service does not apply.

However, the gain must still be declared on your Self Assessment tax return, and foreign tax paid may be claimable as relief under double taxation rules.

The key is getting advice early, especially where exchange rates and foreign tax systems are involved.

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How Is the Gain Calculated?

In simple terms:

Sale price
minus purchase price
minus allowable costs (legal fees, stamp duty, improvement works)
equals the capital gain

From there:

• Deduct any available annual exemption
• Apply reliefs (e.g., Private Residence Relief if relevant)
• Tax is charged at 18% or 24% depending on your income band

Getting the calculation wrong can mean overpaying — or underpaying and triggering HMRC queries.

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Why You Shouldn’t Leave It Late

Completion dates matter.

The 60-day clock starts from the date of completion, not exchange.

By the time solicitors have finalised paperwork and funds are received, you may already have lost valuable time.

If you are planning a sale, it’s best to prepare the CGT position in advance so the reporting can be done quickly after completion.

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Final Thoughts

The 60-day CGT rule isn’t complicated — but it is strict.

Property sellers are losing thousands simply because they didn’t realise the reporting had to be done separately and quickly.

If you’ve recently sold a property or are about to, make sure you understand your reporting obligations before the deadline passes.

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If you need help calculating or submitting a 60-day CGT return:

📞: 0161 710 1901
📧: Tax@TaxesDoneRight.co.uk
Dm Us:
www.taxesdoneright.co.uk