Gains on Property Disposals: Mastering the 60-Day Reporting Rule
In the UK, when selling a residential property that is not your primary residence, you are required to report and pay any Capital Gains Tax (CGT) liabilities within 60 days of completing the disposal. This rule has been in place since 2020 and missing the deadline can incur interest and penalties.
At Fiander ETL, our expert Private Client team will ensure you stay compliant with all regulations when selling your property, allowing peace of mind throughout the whole process.
At Fiander ETL, our expert Private Client team will ensure you stay compliant with all regulations when selling your property, allowing peace of mind throughout the whole process.
Why the 60-Day Rule Matters
The 60day reporting rule applies from the day of completion of the sale. Completion is the point at which the legal title transfers and the sale proceeds are received. As exchange and completion can take place weeks apart, the time available to prepare the 60day CGT return will vary depending on the transaction. In some cases, clients may have a limited window between exchange and completion, so early preparation is essential.
HMRC will charge interest, and may also apply penalties, for any CGT returns submitted after the 60day deadline. It is therefore essential that the report is completed and filed on time. At Fiander ETL, our specialist team ensures submissions are prepared promptly and accurately, helping clients remain fully compliant with HMRC requirements.
HMRC will charge interest, and may also apply penalties, for any CGT returns submitted after the 60day deadline. It is therefore essential that the report is completed and filed on time. At Fiander ETL, our specialist team ensures submissions are prepared promptly and accurately, helping clients remain fully compliant with HMRC requirements.
What Must be Reported
The following information must be included in your report to HMRC:
- Property details including the full address, the completion date of the sale, the purchase and sale prices, and any associated allowable costs.
- A full calculation of the capital gain showing the sale proceeds less the purchase price and all allowable costs. This results in the chargeable gain to be assessed for CGT.
- The applicable CGT rate which for UK resident individuals disposing of residential property depends on your total taxable income.
- For the 2026/27 tax year, CGT on residential property is charged at:
- 18% on the portion of gains that fall within the basic rate income tax band.
- 24% on the portion of gains that fall above the basic rate band.
Reliefs That can Reduce CGT
There are several CGT reliefs and exemptions that may help reduce your overall annual liability. However, not all of these apply to disposals that must be reported under the 60day CGT reporting rules, and HMRC recommends seeking professional advice where circumstances are complex.
- Annual Exempt Amount (AEA): Each tax year, individuals have a tax-free allowance before CGT becomes payable. For the 2025/26 and 2026/27 tax years, the AEA is £3,000 per individual.
- Use of Capital Losses: Allowable losses can be set against your gains to reduce the amount of CGT you owe. Losses can also be carried forward if reported to HMRC.
- Spousal and Civil Partner Transfers: Assets transferred between spouses or civil partners are treated as no gain, no loss, meaning the receiving partner acquires the asset at the original base cost. This is a useful way to utilise both partners’ annual exemptions, potentially doubling the tax-free amount.
Confusion Over PPR
There can often be uncertainty around which CGT reliefs apply when selling a nonprimary residential property. One of the most commonly misunderstood reliefs is Principal Private Residence Relief (PPR). PPR applies only to your main home and is subject to strict HMRC conditions, including evidence of genuine occupation. It generally does not apply to second homes, rental properties, or other nonprimary residences.
For help understanding which reliefs apply to your situation and navigating the tax considerations of your property sale, speak to a member of our expert Private Client team at Fiander ETL.
For help understanding which reliefs apply to your situation and navigating the tax considerations of your property sale, speak to a member of our expert Private Client team at Fiander ETL.
Compliance Reduces Costs
When selling a residential property, whether or not it is your main home, it is important to remain compliant and organised. Preparing documentation early and ensuring you understand your CGT reporting obligations, including the 60day rule, can prevent avoidable delays and errors.
Failure to report and pay any CGT due on time can result in interest charges and, in some cases, penalties from HMRC, ultimately reducing the profit you make from the sale.
For tailored guidance throughout the process, Fiander ETL can support you with compliant, accurate reporting and expert financial advice when selling your UK property.
Failure to report and pay any CGT due on time can result in interest charges and, in some cases, penalties from HMRC, ultimately reducing the profit you make from the sale.
For tailored guidance throughout the process, Fiander ETL can support you with compliant, accurate reporting and expert financial advice when selling your UK property.
