The 60 day CGT reporting property rule requires UK property sellers to notify HMRC of most residential property disposals within 60 days of completion. This applies whether you owe capital gains tax or not, and failure to comply can result in significant penalties.

Introduced in April 2020 for non-residents and extended to UK residents in October 2021, this rule has caught many landlords off-guard. Unlike the traditional self-assessment deadline, you cannot wait until January following the tax year to report your property sale.

When the 60-Day Rule Applies and Key Exemptions

The rule applies to disposals of UK residential property by both UK residents and non-residents. You must report property sale HMRC within 60 days if you sell:

  • Buy-to-let rental properties
  • Second homes or holiday properties
  • Commercial property with any residential element
  • Property held through a partnership
  • Inherited property (unless it qualifies for full relief)

The 60-day period starts from the completion date (when ownership transfers), not the exchange of contracts. If completion happens on a Friday, day one is the following Monday.

You do not need to report within 60 days if the property sale qualifies for:

  • Full Private Residence Relief: Your main home with no business use or letting
  • No Gain No Loss: Transfers between spouses or civil partners
  • Annual Exempt Amount: Total gains for the tax year under £3,000 (2026/27)
  • Commercial Property Only: Pure commercial property with no residential element

However, if you claim partial Private Residence Relief (for example, a property that was your main home for some years but let out for others), you typically still need to report within 60 days.

What and How to Report to HMRC

When you report capital gains tax 60 days after completion, you must provide:

  • Property address and sale price
  • Completion date and acquisition details
  • Calculation of gain or loss
  • Any reliefs claimed (such as Private Residence Relief)
  • Estimated tax liability

You must also pay any CGT owed at this stage. For property disposals, CGT is charged at 18% for basic rate taxpayers and 24% for higher rate taxpayers in 2026/27.

Example Calculation

A landlord sells a buy-to-let property for £450,000 that they bought for £350,000. After deducting legal fees and improvement costs of £15,000, the taxable gain is £85,000. As a higher rate taxpayer, they owe £20,400 (£85,000 × 24%) in CGT, due within 60 days of completion.

You must report through HMRC's online service using your Government Gateway account. The process involves:

  1. Access the service: Log into your HMRC online account
  2. Complete the return: Provide all required property and financial details
  3. Calculate the tax: The system will compute your CGT liability
  4. Pay immediately: Any tax owed must be paid when you submit

If you do not have a Government Gateway account, you need to register first. This can take several days, so start the process as soon as you exchange contracts.

HMRC CGT Reporting Requirements for 2026

From 6 April 2026, UK residents disposing of residential property must report and pay any Capital Gains Tax (CGT) within 60 days of completion [4]. This deadline applies to most sales of UK residential property where a gain is chargeable [2]. The process involves gathering the necessary documents, calculating the gain, submitting a return via HMRC's online service, and paying the tax due.

To report a property sale, you will need the property address, sale price, acquisition details (including purchase price and date), and records of any allowable costs such as estate agents' and solicitors' fees or improvement works [2]. You must also detail any reliefs claimed, such as Private Residence Relief, and provide an estimate of the tax payable. The return is submitted through the Capital Gains Tax on UK Property service on gov.uk [6].

The 60-day clock starts on the completion date, not the exchange date [5]. For the 2026/27 tax year, the CGT rates on residential property are 18% for basic rate taxpayers and 24% for higher rate taxpayers [4]. The tax must be paid at the time of submission. If your total gains for the year are below the annual exempt amount of £3,000, you do not need to report or pay CGT [4]. Exemptions also apply where full Private Residence Relief is available, or for no gain/no loss transfers between spouses or civil partners [2].

Failure to comply with the 60-day rule triggers penalties. An initial £100 fixed penalty applies even if no tax is owed, with further penalties of up to 5% of the tax due after 12 months [1]. Interest also accrues on any unpaid tax at the current HMRC rate. Note that even after filing the 60-day return, you must still include the disposal in your annual Self Assessment tax return, claiming credit for the tax already paid [1].

Penalties for Late Reporting

HMRC imposes automatic penalties for failing to meet the 60-day deadline:

  • Initial penalty: £100 (even if no tax is owed)
  • 3 months late: Additional £300
  • 6 months late: Further penalty of £300
  • 12 months late: Additional penalty of 5% of the tax owed (minimum £300)

Interest also accrues daily on unpaid tax from the day after the 60-day deadline. These penalties can quickly escalate, making timely reporting essential.

Rules for Non-Residents, Companies and Trusts

Non-resident property owners face additional complexity. They must report and pay CGT on UK property disposals within 60 days, regardless of the gain amount. This applies even if they would normally qualify for the annual exempt amount. Non-residents cannot use the £3,000 annual exempt amount exemption from 60-day reporting. They must report all UK residential property disposals, though they can still claim the exemption against the actual tax calculation.

Companies disposing of UK residential property must also comply with 60-day reporting, but they report corporation tax on property gains rather than CGT. The reporting deadline remains 60 days from completion. Trustees disposing of trust property generally must report within 60 days, though specific trust rules may apply depending on the trust type and beneficiary circumstances.

Integration with Self-Assessment and Record Keeping

Reporting within 60 days does not replace your self-assessment obligation. You must still include the property disposal on your annual tax return, but you can claim credit for any CGT already paid through the 60-day process. This creates a two-stage reporting requirement: immediate notification and payment within 60 days, followed by confirmation on your self-assessment return. The capital gains tax property complete guide provides detailed guidance on calculating your overall tax position.

Maintain comprehensive records to support your 60-day CGT report:

  • Original purchase documentation and costs
  • Records of capital improvements and enhancement expenditure
  • Legal fees, surveyor costs, and estate agent fees
  • Evidence supporting any relief claims
  • Sale completion statement and final sale price

These records must be retained for at least four years after the tax year of disposal, as HMRC can enquire into your reporting even after accepting the initial return.

Planning and Professional Support

Property investors should factor the 60-day deadline into their sale planning:

  • Prepare documentation early: Gather acquisition costs, improvement records, and legal fees before completion
  • Set up HMRC online access: Register for Government Gateway when you exchange contracts
  • Calculate provisional tax: Estimate your CGT liability to ensure sufficient funds available
  • Consider timing: Plan completions to allow adequate preparation time

The 60-day CGT reporting property rule creates tight deadlines that can be challenging for complex transactions. Consider professional support if your disposal involves:

  • Multiple properties or partial disposals
  • Mixed-use property (residential and commercial)
  • Complex relief claims (entrepreneur's relief, rollover relief)
  • Partnership or trust structures
  • Non-resident tax implications

A specialist property accountant can ensure accurate reporting and help optimise your tax position within the tight timeframes.

Common Mistakes and Future Developments

Landlords frequently make these errors when reporting within 60 days:

  • Missing the deadline: Assuming they can wait until self-assessment
  • Incorrect relief claims: Misunderstanding Private Residence Relief eligibility
  • Incomplete cost information: Failing to include all allowable expenses
  • Payment delays: Submitting the report but failing to pay the tax immediately
  • Wrong disposal date: Using exchange date instead of completion date

These mistakes can trigger penalties and create ongoing compliance issues with HMRC.

The 60-day reporting rule represents HMRC's move toward real-time tax reporting. With Making Tax Digital for Income Tax becoming mandatory from April 2026, property investors face increasing digital reporting requirements across all aspects of their tax affairs. Consider how the 60-day rule fits into your broader tax compliance strategy, especially if you operate through a buy-to-let limited company or manage a substantial property portfolio.

Sources

  1. gov.uk: Report and pay your Capital Gains Tax: If you have other ... - GOV.UK
  2. aka.hmrc.gov.uk: Tax when you sell property: Work out your gain - GOV.UK
  3. fca.org.uk: FCA fines Kristo Käärmann £350000 for failing to notify the FCA of ...
  4. icaew.com: Prepare for 2026/27: Individuals - ICAEW.com
  5. accaglobal.com: Exceptions to the 60-day CGT rules - ACCA Global
  6. att.org.uk: CGT on UK Property Reporting Service - a user's guide