The 60 day CGT reporting property rule requires UK landlords to notify HMRC and pay any capital gains tax within 60 days of completing a property sale. This applies to most residential property disposals, including buy-to-let sales, regardless of whether you owe any tax.

Introduced in April 2020, this reporting requirement replaced the previous system where landlords only declared capital gains in their annual Self Assessment. The rule aims to collect CGT sooner and reduce the tax gap on property transactions.

Who Must Follow the 60 Day CGT Reporting Rule?

The 60-day reporting requirement applies to UK residents, non-residents, and companies disposing of UK residential property. This includes:

  • Buy-to-let properties — rental properties sold by individual landlords
  • Second homes — holiday homes or properties not used as main residence
  • Inherited property — properties sold after inheriting them
  • Property development sales — residential units sold by developers (though these may be trading transactions)
  • Joint ownership disposals — each joint owner must report separately

Companies selling residential property through their business activities must also comply, though commercial property sales follow different rules.

Key Exemptions from 60 Day Reporting

You don't need to report property sale HMRC within 60 days if:

  • No gain or loss — the sale results in neither a capital gain nor allowable loss
  • Main residence — the property qualifies for full Principal Private Residence Relief
  • Spouse transfers — transfers between married couples or civil partners
  • Qualifying corporate group — transfers within certain company groups
  • Court orders — disposals under specific legal requirements

Even if you think you're exempt, it's often safer to report anyway. HMRC's penalty system doesn't distinguish between genuine exemptions and oversight.

Mixed-Use Property Complications

Properties with both residential and commercial elements can create complications. If the residential portion is substantial, the 60-day rule typically applies to the entire disposal. Get specialist advice for mixed-use properties as the rules can be complex.

What Must Be Reported Within 60 Days?

Your capital gains tax 60 days report must include:

  • Property details (address, purchase date, sale price)
  • Acquisition costs and disposal costs
  • Any capital gains tax liability
  • Payment of tax due (if any)
  • Supporting evidence and calculations

The report goes beyond simple notification — you must calculate and pay any CGT due immediately. This differs from the old system where payment wasn't due until the following January.

Required Supporting Information

HMRC expects detailed supporting information with your report:

  • Purchase documentation — contracts, completion statements, legal costs
  • Improvement records — receipts for capital improvements over ownership period
  • Sale documentation — sale contract, estate agent fees, legal costs
  • Relief calculations — workings for any reliefs claimed (e.g. lettings relief, PPR)

Keep comprehensive records throughout ownership. Reconstructing costs and improvements years later is often impossible and expensive.

How to Calculate Your 60 Day CGT Liability

Your capital gains tax calculation follows the standard CGT rules. The 60-day requirement doesn't change how CGT is calculated — only when it's reported and paid.

Basic CGT Calculation Steps

Here's the standard calculation process:

  • Sale proceeds — gross sale price received
  • Minus disposal costs — estate agent fees, legal costs, improvement costs
  • Minus acquisition costs — original purchase price plus legal costs, stamp duty, improvement costs
  • Equals capital gain — your taxable gain before reliefs
  • Minus annual exempt amount — £3,000 for 2025/26
  • Apply tax rates — 18% basic rate, 24% higher rate on remaining gain

For detailed guidance on CGT calculations, see our comprehensive capital gains tax property guide.

Example: 60 Day CGT Calculation

Sarah sells her buy-to-let property in Birmingham:

  • Sale price: £280,000
  • Original purchase (2018): £180,000
  • Purchase costs: £3,000 (legal fees, stamp duty)
  • Improvements: £15,000 (new kitchen, bathroom)
  • Sale costs: £8,000 (estate agent, legal fees)

Calculation: £280,000 - £8,000 - £180,000 - £3,000 - £15,000 = £74,000 gain. Minus £3,000 annual exemption = £71,000 taxable gain. At 24% higher rate = £17,040 CGT due within 60 days.

The 60 Day Reporting Process Step-by-Step

Follow this process to meet your 60 day CGT reporting property obligation:

Step 1: Gather All Documentation (Days 1-10)

Immediately after completion, collect:

  • Completion statement from solicitor
  • All purchase documentation
  • Records of capital improvements
  • Professional fees and costs

Step 2: Calculate Your CGT Liability (Days 10-30)

Work through the CGT calculation systematically:

  • Calculate gross capital gain
  • Apply any available reliefs
  • Determine tax rate (18% or 24%)
  • Calculate final tax due

Step 3: Submit Online Report (Days 30-50)

Use HMRC's online CGT property service:

  • Create account or log in to existing Government Gateway
  • Complete the digital CGT return
  • Upload supporting documentation
  • Review calculations carefully

Step 4: Pay Any Tax Due (By Day 60)

Payment must reach HMRC by the 60th day:

  • Online banking (fastest method)
  • CHAPS payment for large amounts
  • Allow 3-5 working days for payment processing

Penalties for Missing the 60 Day Deadline

HMRC's penalty system for late 60 day CGT reporting property submissions is automatic and harsh:

  • £100 initial penalty — applied immediately after the 60-day deadline
  • £300 additional penalty — if still outstanding after 6 months
  • £300 further penalty — if still outstanding after 12 months
  • 5% of tax due penalties — at 6 months and 12 months (if tax is owed)
  • Interest on unpaid tax — calculated from the original due date

Even if you owe no CGT, you still face the £100 penalty for late reporting. There's no "de minimis" exemption — the penalty applies regardless of the tax amount.

Reasonable Excuse Defence

You can appeal penalties if you have a "reasonable excuse" for late filing:

  • Serious illness — you or immediate family member
  • Bereavement — death of partner or close relative
  • Technology failures — HMRC system problems (rare)
  • Postal delays — for paper submissions (not recommended)

Poor record keeping, busy schedule, or relying on others are typically not accepted as reasonable excuses.

Special Considerations for Different Property Types

Joint Property Ownership

When jointly-owned property is sold, each owner must submit their own 60-day report. You cannot file a joint return — each person is individually responsible for their share.

Married couples can transfer their share to utilise both annual exemptions, but this must be done before the sale completes.

Inherited Property Sales

Properties sold after inheritance typically trigger 60-day reporting requirements. The capital gain is calculated from the probate value (or market value at death) to the sale price.

Executors selling estate property may need to report on behalf of beneficiaries, depending on the circumstances.

Company Property Disposals

Limited companies disposing of residential property must also follow 60-day reporting rules. The process is similar, but corporate CGT rates apply instead of individual rates.

For landlords considering buy-to-let limited company structures, this reporting requirement adds another compliance layer.

Non-Resident Landlord Complications

Non-resident landlords face additional complexity with the 60-day rule:

  • Worldwide income assessment — determining basic vs higher rate status
  • Double taxation relief — claiming foreign tax credits
  • Currency conversion — using appropriate exchange rates
  • Agent responsibilities — UK representatives may need to assist

Non-residents should get specialist advice before any UK property disposal. The interaction between domestic and international tax rules creates significant complexity.

Common Mistakes to Avoid

These frequent errors can trigger penalties or incorrect tax calculations:

Timing Mistakes

  • Confusion over completion date — the 60 days run from legal completion, not exchange
  • Weekend and holiday confusion — if day 60 falls on a weekend, the deadline is the next working day
  • Assuming exemption applies — reporting even when unsure is often safer

Calculation Errors

  • Missing improvement costs — failing to include capital improvements reduces allowable costs
  • Wrong tax rates — using income tax rates instead of CGT rates
  • Ignoring reliefs — not claiming available reliefs like Principal Private Residence Relief

Documentation Problems

  • Poor record keeping — unable to evidence costs and improvements
  • Missing supporting documents — HMRC expects comprehensive evidence
  • Currency issues — incorrect exchange rate calculations for foreign elements

Getting Professional Help with 60 Day Reporting

The 60-day deadline is tight, especially for complex property transactions. Many landlords benefit from professional support to ensure accurate, timely compliance.

A property accountant can:

  • Calculate your CGT liability accurately
  • Identify all available reliefs and exemptions
  • Submit the report on your behalf
  • Ensure all supporting documentation is complete
  • Handle any HMRC queries or appeals

The cost of professional help is often less than HMRC penalties for errors or late submission.

Future Changes and Planning Considerations

The 60-day reporting requirement is now established and unlikely to change. However, other CGT developments may affect your planning:

  • CGT rate changes — rates may increase in future budgets
  • Annual exemption erosion — the £3,000 limit may not increase with inflation
  • Relief restrictions — lettings relief has already been curtailed
  • Digital reporting expansion — more real-time reporting requirements likely

Consider timing of future property sales in your overall property investment tax planning strategy.

Key Takeaways for Landlords

The 60 day CGT reporting property rule represents a significant compliance requirement for UK landlords:

  • Reporting is mandatory within 60 days of completion for most residential property sales
  • Both reporting and payment are due within the same 60-day period
  • Penalties apply automatically for late submission, even if no tax is due
  • Professional help can ensure accurate, timely compliance
  • Good record keeping throughout ownership is essential

Don't underestimate the administrative burden of this requirement. Start preparing immediately after exchange of contracts, not after completion.