CGT 60-Day Deadline: Don't Miss the Window on UK Property Sales
The 60-day capital gains tax reporting deadline for UK residential property sales catches many taxpayers off guard. Here is what it is, who it affects, and how to comply.
Since 27 October 2021, UK residents and non-residents who sell UK residential property must report any capital gain to HMRC and pay any capital gains tax (CGT) due within 60 days of completion, even if the overall tax position for the year results in no additional tax being payable.
This is one of the most commonly missed compliance obligations in UK property taxation.
Who Does the 60-Day Rule Apply To?
The 60-day CGT reporting obligation applies to:
- UK residents disposing of UK residential property where a CGT charge arises (after applying the annual exempt amount and any available reliefs)
- Non-UK residents disposing of any UK property, residential or commercial, regardless of whether a gain arises
For non-UK-resident sellers, the requirement to report applies even where no CGT is due. This is a strict obligation and failure to report attracts automatic penalties.
What Is the Deadline?
The 60-day clock starts from the date of completion, not the date of exchange. For off-plan or delayed completions, this can catch sellers off guard if they are not tracking completion dates carefully.
If the 60th day falls on a weekend or bank holiday, the deadline is the next working day.
What Must Be Reported?
The report must include:
- Details of the property sold (address, title number)
- The sale proceeds
- The original purchase cost and any qualifying capital expenditure
- Any available reliefs (e.g., principal private residence (PPR) relief, lettings relief, annual exempt amount)
- The resulting chargeable gain
- The estimated CGT due, based on the taxpayer's estimated income for the year
An estimated figure is acceptable at the 60-day reporting stage; the actual figure can be confirmed in the annual Self Assessment return. However, the estimated payment must be made within the 60-day window.
What Are the Penalties for Late Reporting?
Penalties for failure to report within the 60-day window are automatic:
| Period | Penalty | |---|---| | 1 day late | £100 | | 3-6 months late | £300 (in addition to the £100) | | 6-12 months late | £300 additional penalty | | Over 12 months | Further tax-based penalties may apply |
Interest is also charged on unpaid CGT from the 60-day deadline until the tax is paid.
Common Situations That Affect the Calculation
Principal Private Residence Relief
If the property has been your main home at any point, principal private residence (PPR) relief may reduce or eliminate the CGT charge. The final 9 months of ownership always qualify for PPR, even where the property is no longer your main residence. This is particularly relevant for expatriates who have vacated a UK home before selling.
Non-Resident CGT
Non-UK-resident sellers are taxed on all UK residential property gains regardless of domicile or LTR status. The calculation uses the value of the property on 5 April 2015 as the base cost for properties owned before that date (the "rebasing" rule).
Annual Exempt Amount
The CGT annual exempt amount is £3,000 for 2024/25 and 2025/26. Where the gain is below this threshold and no other gains have been made in the year, no CGT will be payable, but the 60-day report may still be required for non-residents.
How Expat UK Tax Can Help
We routinely assist clients with 60-day CGT reports, including:
- Calculating the gain net of all available reliefs
- Applying non-resident CGT rebasing where applicable
- Preparing and submitting the 60-day report to HMRC
- Making the estimated CGT payment on account
- Reconciling the position in the annual Self Assessment return
If you have recently sold, or are planning to sell, a UK property, contact us well before completion to ensure the 60-day report can be submitted on time.
