When you sell a UK property, you must report the sale to HMRC within 60 days of completion and pay any capital gains tax (CGT) due. This requirement applies to most property disposals, including buy-to-let properties, second homes, and commercial premises.

The 60-day reporting rule is separate from your annual Self Assessment return and carries significant penalties for late reporting. Here's everything UK property owners need to know about meeting this critical deadline.

Who Must Report Property Sale HMRC 60 Days

The 60-day reporting requirement applies to UK residents and non-residents disposing of UK residential property. You must report if you're selling:

  • Buy-to-let rental properties
  • Second homes or holiday properties
  • Inherited properties (unless covered by principal private residence relief)
  • Properties owned through partnerships
  • Mixed-use properties with residential elements

Exemptions include: Your main residence (if fully covered by principal private residence relief), properties sold at a loss with no CGT liability, and certain property transfers between spouses.

Non-resident landlords have additional reporting obligations and must use the non-resident CGT return even if no tax is due.

CGT Online Reporting: The HMRC Property Disposal Form

HMRC's property disposal service is an online-only system. You cannot submit paper forms for the 60-day reporting requirement.

Accessing the Online Service

You'll need:

  • Government Gateway user ID and password
  • National Insurance number
  • Property sale completion date
  • Sale proceeds and acquisition costs
  • Details of any improvements made

The system guides you through calculating your CGT liability and allows immediate online payment. If you don't have a Government Gateway account, allow extra time to register before your 60-day deadline.

Information Required for the Form

The HMRC property disposal form requires detailed information about:

  • Property address and type
  • Purchase date and original cost
  • Sale date and gross proceeds
  • Legal fees, estate agent costs, and other disposal expenses
  • Improvement costs (not repairs or maintenance)
  • Any reliefs being claimed

Keep all supporting documentation, as HMRC may request evidence during compliance checks.

CGT Calculation and Payment

The online service automatically calculates your CGT liability based on the information provided. Current CGT rates for property are:

  • Basic rate taxpayers: 18% on property gains
  • Higher/additional rate taxpayers: 24% on property gains

The annual exempt amount for 2025/26 is £3,000 per person. For detailed guidance on CGT calculations, see our complete guide to capital gains tax on property.

Payment Methods and Deadlines

CGT must be paid within the same 60-day window. The online service accepts:

  • Direct debit (same-day processing)
  • Debit card (immediate)
  • Bank transfer (allow 3 working days)
  • CHAPS payment (same day if made before 3pm)

If your 60-day deadline falls on a weekend or bank holiday, you have until the next working day. However, don't rely on this extension—submit early where possible.

Step-by-Step Reporting Process

Step 1: Gather Your Documentation

Before starting the online form, collect:

  • Purchase contract and completion statement
  • Sale contract and completion statement
  • Receipts for legal fees, survey costs, and estate agent fees
  • Evidence of improvement costs (invoices, receipts)
  • Previous CGT calculations if this is a partial disposal

Step 2: Access the HMRC Service

Log into your Government Gateway account and navigate to "Capital Gains Tax on UK property" service. The system will ask whether you're reporting as an individual, trust, or company.

Step 3: Complete Property Details

Enter the property address, type, and dates of acquisition and disposal. Be precise with dates—use completion dates, not exchange dates. The system validates property addresses against Royal Mail records.

Step 4: Enter Financial Information

Input acquisition costs, disposal proceeds, and allowable expenses. The system provides guidance on what qualifies as an allowable expense. Common mistakes include:

  • Including VAT when you can reclaim it
  • Adding repair costs instead of improvement costs
  • Forgetting incidental costs like surveys or valuation fees

Step 5: Review and Submit

The system calculates your CGT liability and shows payment options. Review all figures carefully—corrections after submission require contacting HMRC directly.

Step 6: Make Payment

Choose your payment method and complete the transaction. Keep the payment confirmation reference for your records.

Special Cases and Complications

Joint Ownership

Each joint owner must submit separate returns within 60 days. The system allows you to indicate joint ownership and apportion gains accordingly. Married couples and civil partners typically split gains 50:50 unless they hold unequal shares.

Company Ownership

Companies don't use the residential property disposal service. Corporate property disposals are reported through Corporation Tax returns, but companies may still need to submit quarterly instalment payments for large gains.

Trust Disposals

Trustees must report property disposals within 60 days using the same online service but selecting "trust" as the entity type. Trust CGT rates differ from individual rates.

Non-Resident Disposals

Non-residents use the same online service but must report all disposals, even if no tax is due. The system requires additional information about tax residence status and any double taxation treaty claims.

Penalties for Late Reporting

HMRC imposes automatic penalties for late reporting, regardless of whether tax is due:

  • Initial penalty: 5% of tax due (minimum £300)
  • After 6 months: Additional 5% of tax due (minimum £300)
  • After 12 months: Additional penalty based on circumstances

If no tax is due, the initial penalty is £300, rising to £600 after 6 months. Interest charges apply to both unpaid tax and penalties from the original deadline.

Reasonable Excuse

HMRC may cancel penalties if you can demonstrate a reasonable excuse for late reporting. Accepted reasons include:

  • Serious illness affecting you or a close family member
  • Unexpected computer system failures
  • Postal delays for critical documents
  • Fire, flood, or theft preventing access to records

General pressure of work or lack of knowledge about the deadline are not considered reasonable excuses.

Common Mistakes to Avoid

Property owners frequently make these errors when reporting disposals:

  • Using exchange date instead of completion date: The 60-day clock starts from legal completion
  • Forgetting about the deadline: Many assume they only need to report on Self Assessment
  • Incorrect expense allocation: Only improvement costs are allowable, not repairs or maintenance
  • Missing joint ownership requirements: Each owner needs separate returns
  • Incomplete payment: Ensure payment clears within the 60-day window

What Happens After Reporting

HMRC issues a payment reference number upon successful submission. You'll still need to include the disposal on your Self Assessment return, but the 60-day report satisfies the immediate reporting obligation.

HMRC may subsequently query your return or request additional documentation. Keep all supporting records for at least 4 years after the disposal date.

Amendments and Corrections

If you discover errors after submission, contact HMRC immediately. Minor corrections may be handled through the online service, but significant changes require telephone contact or written correspondence.

You cannot amend returns to claim additional reliefs or expenses without proper supporting documentation.

Getting Professional Help

Property disposal reporting can be complex, particularly for multiple properties, non-residents, or unusual ownership structures. Consider professional assistance if:

  • Your disposal involves complex calculations or multiple reliefs
  • You're unsure about allowable expenses or improvement costs
  • The property was inherited with unclear acquisition costs
  • You've missed the 60-day deadline
  • You're a non-resident with treaty claims

A specialist property accountant can ensure accurate reporting and help minimise your CGT liability through legitimate planning opportunities.

Planning for Future Disposals

To streamline future property sale reporting:

  • Maintain detailed records of all property-related expenses from purchase
  • Separate improvement costs from repair costs in your bookkeeping
  • Keep digital copies of all invoices and receipts
  • Set calendar reminders for the 60-day deadline when you exchange contracts
  • Ensure your Government Gateway account details are current

Regular record-keeping makes the reporting process much smoother and reduces the risk of missing allowable deductions.

For comprehensive guidance on property tax compliance, see our complete guide to property investment tax.