When you sell a UK residential property for more than you paid for it, you’ll normally need to report the profit (your capital gain) to HMRC within 60 days of completion and pay any Capital Gains Tax (CGT) owed.
However, there is a helpful exception that could defer when you pay the CGT.
A Useful Exception to the 60‑Day Rule
If your property sale (or gift) completes in the 2025/26 tax year, and you submit your 2025/26 Self‑Assessment Tax Return within the same 60‑day window, including:
- full details of the disposal
- your CGT calculation
then you do not need to file a separate 60‑day CGT return. Instead, you can simply settle your CGT bill through Self‑Assessment by 31 January 2027.
This can be particularly helpful if you prefer to manage everything through one tax filing rather than dealing with standalone returns. And you get longer to pay your CGT.
Important: These Rules Apply More Widely Than Many Realise
The 60‑day reporting requirement isn’t limited to individuals selling second homes. It also applies to:
- Gifts of residential property to anyone other than your spouse or civil partner
- Trustees and/or Personal representatives handling property disposals within a deceased person’s estate
- Non‑UK residents, disposing of UK property or land—directly or indirectly
(even where no CGT is ultimately payable)
Key Dates to Understand
- Exchange date
Determines the tax year in which the disposal falls for CGT purposes. - Completion date
Triggers the 60‑day deadline for reporting and paying CGT (unless the Self‑Assessment exception applies).
These dates can sometimes fall in different tax years, so timing matters.
Does This Apply to You?
You may need to file a 60‑day CGT return if you are:
- Selling a holiday home
- Disposing of a buy‑to‑let property
- Moving out of your main residence where it wasn’t always your only or main home
- Gifting a property to someone other than your spouse/civil partner
- Acting as a trustee or personal representative and selling property
- A non‑UK resident individual or trustee disposing of UK land or property with the option of using the original cost, rebasing at 5 April 2025 or time apportioning the gain
- A non- UK resident making an ‘indirect’ disposal (i.e. company shares) of an asset deriving most of its value from UK land and property.
Many sellers are caught out by these rules, especially where part of a main residence has been rented out or used for business purposes. UK CGT for non-residents is complex and nuanced, it is often thought that most non-UK residents are exempt from CGT on capital gains realised but sometimes, as illustrated above, that is not the case.
Need Help? We’re Here to Support You
If you’re preparing to sell or gift a residential property, or simply want clarity on your CGT reporting obligations, our tax advisers can guide you through the process and ensure you stay compliant.
Call us on 01223 810100 to speak to our tax team.
