60-Day CGT Reporting: How to Report Capital Gains Tax on UK Property
Selling a property is often one of the biggest financial steps you’ll take. While most people focus on the sale price, it’s equally important to understand whether a tax bill might be waiting for you—and how to report it correctly.
Since October 2020, HMRC requires that gains from the sale of UK residential property which isn’t your main home must be reported online within 60 days of completion. Missing this deadline can lead to penalties and interest, so it’s something every seller needs to know.
Who Needs to Report Capital Gains Tax
The 60-day CGT reporting rule applies when you sell:
A second home
A buy-to-let property
A UK residential property as an overseas owner
If the property has always been your main residence, you’re usually covered by Principal Private Residence (PPR) relief, and the 60-day rule generally doesn’t apply.
Understanding the 60-Day CGT Deadline
The 60-day countdown starts from the date of completion, not exchange of contracts. Within this period, you must:
Work out the gain
Submit your Capital Gains Tax on UK property return online
Pay any CGT due
Failing to do so on time can result in penalties and interest, even if the tax owed is relatively small.
How to Calculate Your Capital Gains
To calculate your CGT:
Gain = Sale Proceeds – Acquisition Costs – Reliefs
Sale proceeds: Net sale price after selling costs, such as legal or estate agent fees
Acquisition costs: Purchase price plus allowable costs, including stamp duty and capital improvements
Reliefs: Partial PPR relief, Letting Relief (if eligible), or other allowable deductions
If you inherited the property, the gain is calculated based on market value at the date of death, not the original purchase price.
The gain is taxed at 18% or 24%, depending on your income.
Reporting Must Be Online
HMRC requires the 60-day CGT return to be submitted online. Reporting digitally:
Speeds up processing
Automatically calculates the CGT due
Provides confirmation that your return has been received
Paper forms are generally not accepted, except in exceptional circumstances, such as a disability preventing online access. HMRC must be contacted in advance to arrange this.
Penalties for Missing the 60-Day Deadline
HMRC takes late reporting seriously. Possible consequences include:
£100 for a late return
Further penalties if the return remains outstanding after 3, 6, or 12 months
Interest on unpaid CGT from the due date until it is paid
Additional penalties if the return is inaccurate, ranging from 30% to 70% of unpaid tax depending on whether it was careless or deliberate
Filing on time and keeping accurate records is the best way to avoid these charges.
Multiple Owners and Overseas Sellers
Joint ownership: Each owner must submit their own return and pay their share of any CGT. Reliefs and gains are typically apportioned by ownership share.
Overseas sellers: Non-UK residents selling UK property must also comply with the 60-day rule. Currency exchange rates may need to be considered when calculating the gain.
Common Pitfalls to Avoid
Confusing completion date with exchange date
Forgetting to include all allowable costs or reliefs
Assuming PPR always covers the property—partial relief may apply
Leaving reporting to the last minute
Always keep all supporting documents, including contracts, invoices, and receipts, in case HMRC queries your return.
Practical Tips for 60-Day CGT Reporting
Start your gain calculation well before completion.
Keep a digital folder of all invoices, receipts, and contracts.
Consider professional advice to avoid mistakes that can trigger penalties or overpayment.
Remember that the 60-day return is separate from your annual self-assessment—any other income or gains still need to be reported on your usual tax return.
FAQ: Capital Gains Tax on UK Property
Q: Who needs to report CGT within 60 days?
A: Anyone selling UK residential property that isn’t their main home, including second homes, buy-to-lets, and overseas-owned property.
Q: When does the 60-day deadline start?
A: From the date of completion of the sale, not exchange of contracts.
Q: Can I submit a paper return for CGT?
A: Generally no. Paper forms are only allowed in exceptional circumstances, such as disability, and HMRC must be contacted in advance.
Q: What penalties apply for late reporting?
A: Late filing penalties start at £100, with interest and additional charges for inaccurate or delayed returns.
Getting It Right
Calculating CGT and meeting HMRC’s 60-day reporting deadline can feel daunting. Professional advice can help you:
Maximise any reliefs available
Submit your return accurately and on time
Avoid penalties or unnecessary interest
Need Help With a Property Sale?
At Tax Matters, we help homeowners, landlords, executors, and overseas sellers understand the tax implications of property sales. We’ll check which reliefs apply, guide you through the 60-day reporting rules, and make sure you don’t end up paying more than you should.
Act early and get it right—it could save you thousands in penalties.
