Reporting Property Gains: Understanding the 60-Day CGT Reporting Rule

Reporting Property Gains: Don't Miss HMRC's 60-Day Deadline

If you've recently sold a UK residential property, it's important to understand your Capital Gains Tax (CGT) reporting obligations. Many property owners are unaware that they may need to report the sale and pay any tax due within just 60 days of completion.

Failing to meet the deadline can result in interest charges and penalties, making it essential to act promptly.

Who Needs to Report a Property Gain?

Individuals who dispose of a UK residential property and have Capital Gains Tax to pay will usually need to submit a report to HMRC within 60 days of the completion date. This requirement applies even if you do not normally complete a Self Assessment tax return.

The gain is calculated after taking into account:

• The original purchase price
• Legal and professional fees
• Certain costs of buying and selling the property
• Qualifying capital improvements
• Any available reliefs or exemptions

For many homeowners, Private Residence Relief may reduce or eliminate any CGT liability where the property has been their main residence.

Paying Capital Gains Tax

Any Capital Gains Tax due should generally be paid within the same 60-day period. If circumstances change after reporting the disposal, you may need to amend the return and settle any additional tax owed.

It's also worth remembering that if you're already within Self Assessment, the property sale must still be included on your annual tax return, even if you've already reported it through HMRC's online property reporting service.

Additional Rules for Non-UK Residents

Non-UK residents face broader reporting requirements and must report disposals of UK land and property, even where no Capital Gains Tax is payable.

Why Professional Advice Matters

Property disposals can be more complex than they first appear. Reliefs, exemptions and allowable costs can significantly affect the amount of tax due, and missing a claim could mean paying more tax than necessary.

At Charlton Baker, our tax specialists help individuals and property investors calculate gains accurately, meet reporting deadlines, and identify legitimate tax-saving opportunities. We can also support wider personal tax planning to help ensure your affairs remain tax-efficient throughout the year.

Call us now on 01380 723692 or email here.