Selling a Property? Don’t Forget the 60-Day Reporting Deadline

60-day reporting deadline rules are one of the most important tax obligations for anyone selling UK residential property. Many property owners assume that any Capital Gains Tax (CGT) is simply dealt with through their Self Assessment tax return. However, in many cases, this is no longer true.

If you sell a residential property that gives rise to Capital Gains Tax, you may need to report the gain and pay the tax within 60 days of completion. Missing this deadline can result in penalties and interest from HMRC.

Understanding how the rules work can help you stay compliant, avoid unnecessary costs and ensure that your property sale runs as smoothly as possible.

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What Is the 60-Day Reporting Deadline?

The 60-day reporting deadline requires individuals who sell or dispose of UK residential property and have Capital Gains Tax to pay to submit a property disposal return to HMRC and make a payment on account of the estimated tax due.

The countdown starts from the date the sale completes, not when contracts are exchanged.

The report is submitted through HMRC’s online Capital Gains Tax on UK Property service and requires you to calculate the estimated gain and tax liability before filing.

This requirement applies separately from your annual Self Assessment tax return, although any final adjustments are made when your tax return is submitted.

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When Does the 60-Day Reporting Deadline Apply?

The 60-day reporting deadline generally applies if:

• You are an individual selling UK residential property.
• The sale results in Capital Gains Tax being payable.
• The property is not fully covered by reliefs such as Private Residence Relief.

Common examples include:

• Buy-to-let properties
• Second homes
• Holiday homes
• Residential investment properties
• Properties received through inheritance (where a taxable gain arises)

If no Capital Gains Tax is payable because losses or reliefs eliminate the gain entirely, you usually do not need to submit a 60-day return.

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How Is Capital Gains Tax Calculated?

Before submitting your return, you’ll need to calculate your taxable gain.

This normally involves:

• Sale proceeds
• Less original purchase price
• Less allowable acquisition costs
• Less selling expenses
• Less qualifying capital improvement costs
• Less available Capital Gains Tax Annual Exempt Amount (where applicable)

The remaining gain is taxed at the appropriate residential property Capital Gains Tax rates based on your overall taxable income.

Because the payment is made before your tax year ends, the calculation is based on information available at the time. Any adjustments can later be made through your Self Assessment return if necessary.

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Why the 60-Day Reporting Deadline Is So Important

Many taxpayers are caught out because they are unaware of the reporting requirement.

Previously, Capital Gains Tax was generally settled through the annual tax return after the end of the tax year. The introduction of the 60-day reporting deadline significantly accelerated this process.

Missing the deadline can lead to:

• Late filing penalties
• Interest on unpaid tax
• Additional penalties if delays continue
• Extra administrative work to correct late submissions

Even where the eventual tax calculation changes, the initial reporting obligation still exists.

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What Information Will You Need?

To complete your report accurately, you’ll usually need:

• Completion date
• Purchase date
• Purchase price
• Sale price
• Solicitor fees
• Estate agent fees
• Stamp Duty Land Tax paid on purchase
• Capital improvement costs
• Records of any previous property relief claims
• Details of any unused capital losses

Keeping accurate records throughout property ownership makes the reporting process much easier.

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Can You Amend the Return?

Yes.

If your calculation changes after submission—for example because further allowable costs are identified—you may be able to amend the return within HMRC’s permitted amendment period.

Any remaining differences are normally reconciled through your annual Self Assessment tax return.

This means it is important to keep supporting documents even after the 60-day return has been submitted.

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Common Mistakes Property Sellers Make

Many property owners make avoidable errors when selling residential property.

Some of the most common include:

• Assuming Self Assessment is sufficient
• Missing the reporting deadline entirely
• Forgetting deductible selling costs
• Not claiming eligible capital improvements
• Misunderstanding Private Residence Relief
• Incorrectly calculating ownership periods
• Leaving calculations until after completion

Professional advice before completion often helps identify reliefs and allowable deductions that reduce the overall Capital Gains Tax liability.

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Who Does Not Usually Need to Report?

Not every property disposal requires a 60-day return.

You may not need to submit one if:

• The entire gain is covered by Private Residence Relief.
• No Capital Gains Tax is payable.
• The disposal is exempt under specific legislation.
• The transaction falls outside the reporting rules.

Each property sale should be reviewed individually because eligibility for reliefs depends on your circumstances.

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Planning Ahead Can Save Time and Money

The best time to consider Capital Gains Tax is before your property sale completes.

Preparing early allows you to:

• Estimate your tax liability.
• Budget for the payment.
• Gather supporting documentation.
• Identify available tax reliefs.
• Meet the reporting deadline without unnecessary stress.

Waiting until after completion often leaves very little time to calculate the gain accurately and submit the return before the deadline expires.

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Final Thought

The 60-day reporting deadline is a crucial obligation for many individuals selling UK residential property. Failing to report and pay Capital Gains Tax within the required timeframe can result in unnecessary penalties, interest and additional compliance issues.

Every property sale is different, and factors such as ownership history, reliefs, allowable expenses and previous losses can all affect your tax position.

At Taxes Done Right Ltd, we help landlords, investors and property owners calculate Capital Gains Tax accurately, identify available reliefs and submit compliant 60-day property returns to HMRC. If you’re planning to sell a property or have recently completed a sale, obtaining professional advice can help ensure you meet your obligations while paying no more tax than necessary.

Need help deciding what’s best for your situation?
📞 Call 0161 710 1901
📧 Email Tax@TaxesDoneRight.co.uk
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