If you completed the sale of a UK residential property on or after 27 October 2021, you must report and pay Capital Gains Tax within 60 days of that completion date. This applies whether you are a UK resident or living abroad. The formal obligation is called the CGT on UK property return, filed through HMRC’s online Property Account, and missing it triggers automatic penalties from day one.
Your immediate next step is straightforward: open the HMRC CGT on UK Property service, complete the return, and pay any tax due within 60 days of completion. If you are unsure of the figures or close to the deadline, contact an accountant now rather than waiting.
You may not need to file if:
- You qualify for full private residence relief (the property was your only or main home throughout your ownership)
- Your gain falls entirely within your annual exempt amount and no other disposals apply
- You are a non-resident and the disposal is of a non-residential property (different rules apply)
- You already filed a Self Assessment return for the same tax year before the 60-day window closed
Keep written evidence of whichever exception applies. HMRC may ask you to demonstrate it later.
Pro Tip: Even if you believe an exception applies, document your reasoning now. A short note with dates, relief calculations, and supporting evidence takes minutes to prepare and can save hours of correspondence later.
Key takeaways
The single most important thing to remember: file the 60-day CGT return on time even if you cannot pay the tax, because filing stops the penalty escalation immediately.
| Point | Details |
|---|---|
| 60-day deadline | Completions on or after 27 October 2021 trigger a 60-day reporting and payment window. |
| File even if you cannot pay | Filing on time stops late-filing penalties from escalating; contact HMRC for Time to Pay separately. |
| Use the correct payment route | Pay via the CGT on UK Property account using the 14-character reference, not via Self Assessment. |
| SA108 reconciliation required | Include the disposal on your annual Self Assessment; the 60-day payment is credited against your liability. |
| CWABC can help | CWABC prepares and files 60-day returns, reconciles SA108, and handles HMRC correspondence across the UK. |
Table of Contents
- Who must file a 60-day CGT return and when does the deadline apply?
- Which events count as a disposal for the 60-day rule?
- How do you calculate the taxable gain for the return?
- What documents do you need before you start the HMRC return?
- Step-by-step: how to file the return and pay HMRC
- What happens if you miss the 60-day deadline?
- What happens after you submit the 60-day return?
- How do joint ownership, estates, and trustees affect the 60-day duty?
- Common filing mistakes and a practical checklist
- Why acting promptly is always the right call
- CWABC can handle your 60-day CGT return for you
- Sources
Who must file a 60-day CGT return and when does the deadline apply?
The 60-day CGT filing deadline applies broadly, and the scope is wider than many people expect.
UK residents must use the CGT on UK Property account for any disposal of UK residential property or land that results in a chargeable gain, where completion falls on or after 27 October 2021. This covers freehold sales, long leasehold disposals, and certain transfers even where no money changes hands.
Non-residents face the same 60-day window and must file even when no tax is due. The obligation to report exists regardless of whether the disposal produces a gain or a loss. This is a firm rule with no income-threshold exemption.
The deadline history matters if you are dealing with an older disposal:
- Completions between 6 April 2020 and 26 October 2021: a 30-day window applied
- Completions on or after 27 October 2021: the current 60-day window applies
Key date to check: Look at the completion date on your solicitor’s completion statement, not the exchange date. The clock starts on the day legal completion occurs.
Who else is caught by the rule:
- Trustees disposing of residential property held in trust
- Personal representatives dealing with a deceased person’s estate where the property has not yet been transferred to beneficiaries
- Companies are generally outside the CGT on UK Property regime (they pay Corporation Tax on gains), but specific circumstances involving non-resident companies may bring them within scope
The statutory basis for the 60-day regime sits in Schedule 2 to the Finance Act 2019, which introduced the reporting and payment-on-account framework that HMRC now administers through the online Property Account.
Which events count as a disposal for the 60-day rule?
A disposal is not limited to a straightforward sale. The CGT rules cast the net wider, and several common situations catch people off guard.
Events that trigger the 60-day reporting duty:
- Sale of a residential property or land on completion
- Transfer of a property as a gift (even between family members)
- Transfer to a trust or from a trust to a beneficiary
- Exchange of a property for another asset
- Part disposal, such as selling a portion of land attached to a property
- Disposal of a share in a jointly owned property (each owner reports their own share)
Transfers between spouses or civil partners living together are generally treated as no-gain, no-loss disposals and do not create a CGT liability. However, non-residents should still consider whether a return is required even in these circumstances, as the LITRG guidance on non-residents and CGT notes that the reporting obligation for non-residents can apply even where gains are offset by losses or reliefs.
Pro Tip: If you are a non-resident and your disposal produces a loss rather than a gain, you still need to file the return within 60 days. Filing a nil or loss return preserves your ability to carry that loss forward against future UK property gains.
How do you calculate the taxable gain for the return?
The calculation follows a clear sequence. Work through each step before you open the online return so you have all the figures ready.
- Start with gross proceeds — the price agreed for the sale (or market value if the disposal is a gift or transfer at undervalue)
- Deduct allowable acquisition costs — original purchase price plus solicitor and stamp duty land tax costs paid on purchase
- Deduct allowable enhancement costs — capital improvements to the property (not repairs or maintenance)
- Deduct allowable disposal costs — estate agent fees, solicitor fees on sale, and any other costs wholly incurred in making the disposal
- Apply reliefs — private residence relief, lettings relief (where applicable), and any other statutory reliefs
- Deduct losses — allowable capital losses from the same or earlier tax years
- Deduct the annual exempt amount — for 2024/25 this is a set amount per individual (confirm the current figure on GOV.UK before filing)
- Apply the correct CGT rate — 18% for basic-rate taxpayers and 24% for higher-rate taxpayers on residential property (rates confirmed from April 2024)
Worked example:
This is an estimate for planning purposes. Your actual liability depends on your total income for the year, which determines whether basic or higher rates apply to the gain.
Pro Tip: Allowable costs must be supported by invoices or receipts. Gather these before you start the return. HMRC can and does ask for evidence, and a missing invoice for a large improvement cost can increase your tax bill significantly.
What documents do you need before you start the HMRC return?
Gathering everything in advance makes the online return much faster to complete and reduces the risk of errors that delay processing.
Property details:
- Full address and postcode of the property
- Title number (from Land Registry or your solicitor’s paperwork)
- Date of completion (from the completion statement)
- Date of original acquisition
Financial figures:
- Sale proceeds (from the completion statement)
- Original purchase price (from your original completion statement or conveyancing file)
- Invoices for all allowable costs: solicitor fees on purchase and sale, estate agent fees, and capital improvement works
- Details of any reliefs you are claiming, with supporting dates and calculations
Ownership and account details:
- Your ownership share if the property is jointly owned
- Details of any previous disposals in the same tax year that affect your annual exempt amount
- Your Government Gateway user ID and password for the CGT on UK Property account
- If an agent is acting for you, their agent reference and authorisation details
Setting up the HMRC Personal Tax Account in advance saves time, particularly if you have not used the Government Gateway recently. The CGT on UK Property service is accessed separately from the main Self Assessment login, so check your credentials work before the deadline approaches.
Numbered pre-flight checklist:
- Locate your completion statement and confirm the completion date
- Pull together all purchase and sale cost invoices
- Calculate your ownership share if the property was jointly owned
- Confirm your Government Gateway credentials work
- Decide whether you are filing yourself or using an agent, and if the latter, ensure authorisation is in place
Step-by-step: how to file the return and pay HMRC
The HMRC Capital Gains Manual guidance at CG-APP18-110 confirms that from 6 April 2020, UK residents disposing of residential property must use the CGT on UK Property account. Here is how to do it.
Step 1: Access the CGT on UK Property account
Sign in at GOV.UK using your Government Gateway credentials. Search for “Report and pay Capital Gains Tax on UK property” and select the correct service. This account is separate from your main Self Assessment account, as the ATT’s CGT UK property reporting service users’ guide makes clear. If you have never used it before, you will need to set it up before you can file.
Step 2: Complete the return fields
Enter the property address, completion date, sale proceeds, allowable costs, and any reliefs claimed. Double-check:
- The completion date matches your solicitor’s completion statement exactly
- Ownership share is entered correctly for joint disposals
- All allowable costs are included and match your invoices
- Any private residence relief or other relief is correctly applied
Step 3: Submit and obtain your payment reference
Once submitted, HMRC generates a 14-character payment reference beginning with X. Record this immediately. You will need it to pay and to reconcile the payment on your Self Assessment return later.
Step 4: Pay using the Property Account payment route
Pay through the CGT on UK Property service, not through your standard Self Assessment payment channel. Paying via the wrong HMRC route is one of the most common errors practitioners encounter, and it causes allocation delays that can make it appear you have not paid even when you have. Accepted payment methods include:
- Online banking or BACS using the 14-character reference
- Debit card via the HMRC payment portal
- CHAPS for same-day payment close to the deadline
What to do if you cannot pay immediately:
File the return on time regardless. Practical guidance from Ross Martin confirms that filing first and then contacting HMRC for a Time to Pay arrangement is the right approach. HMRC is more receptive to agreeing a payment plan once the liability is declared. Filing late to avoid showing a balance due simply adds filing penalties on top of the payment problem.
Pro Tip: If you are paying from overseas, allow extra time for international bank transfers to clear. CHAPS is the safest option for same-day UK receipt close to the deadline. Keep your bank’s transfer confirmation as proof of payment date.
What happens if you miss the 60-day deadline?
Missing the deadline triggers an automatic penalty cascade under Schedule 55 of the Finance Act 2009, and interest accrues daily on any unpaid tax from day 61. The HMRC penalties factsheet CC/FS18a sets out the structure.
| Point in time | Penalty |
|---|---|
| Day after deadline | a fixed penalty |
| 6 months late | a penalty of 5% of tax due or more |
| 12 months late | A further penalty of 5% of tax due or more |
| Unpaid tax from day 61 | Daily interest at Bank of England base rate plus a set percentage |
These are filing penalties under Schedule 55. Separate late-payment penalties under Schedule 56 can also apply, with their own 5% escalator on unpaid tax at 30 days, 6 months, and 12 months after the payment due date.
Immediate steps if you have already missed the deadline:
- File the return at once. Every day you delay adds to the interest accruing and keeps the penalty escalation clock running.
- If HMRC has already issued a penalty notice, you have 30 days from the date of that notice to appeal.
- Gather evidence of a reasonable excuse if one exists: serious illness, bereavement, or a technical failure on HMRC’s own systems can support an appeal. The Tax Tribunal Help guidance on CGT 60-day reporting appeals explains the limited statutory routes available.
- Contact HMRC or an accountant immediately if you are unsure of the figures. An estimated return filed on time is better than an accurate return filed late.
Urgent reminder: Filing the return stops the late-filing penalty from escalating further, even if you cannot pay the tax at the same time. Never delay filing simply because you cannot pay.
What happens after you submit the 60-day return?
Submitting the return and paying the tax is not the end of the process. There is one further step that catches many people out.
You must include the disposal on your annual Self Assessment tax return using the SA108 Capital Gains Summary pages, even though you have already reported and paid via the 60-day service. The GOV.UK guidance on reporting property sales confirms that the CGT paid through the 60-day service is credited against your Self Assessment liability, so you will not pay twice. But the disposal must appear on the SA108 for the reconciliation to work correctly.
Practical steps after submission:
- Save or print the submission confirmation from the CGT on UK Property account
- Record the 14-character payment reference and the return reference in your records
- Enter both references on your SA108 when completing your annual Self Assessment
- Check whether HMRC has sent a confirmation email or letter; if you have not received one within a few weeks, log back into the Property Account to verify the submission status
For landlords, the property income tax return guide explains how CGT reporting sits alongside rental income reporting on Self Assessment.
Pro Tip: Keep a dedicated folder, physical or digital, for each property disposal. Store the completion statement, all cost invoices, the CGT return confirmation, the payment reference, and the SA108 pages together. If HMRC opens a compliance check months later, having everything in one place saves significant time.
How do joint ownership, estates, and trustees affect the 60-day duty?
The rules apply to each person with a beneficial interest in the property, not to the property as a single unit.
Joint owners:
Each owner reports their own share of the gain separately. If a property is owned 50/50, each owner files their own return showing 50% of the proceeds and 50% of the allowable costs. Each owner also applies their own annual exempt amount and their own CGT rate based on their individual income. One owner cannot file on behalf of the other unless they hold a formal power of attorney.
Estates and personal representatives:
When a property forms part of a deceased person’s estate, the personal representative (executor or administrator) is responsible for filing the 60-day return if the estate disposes of the property before it is transferred to a beneficiary. The acquisition cost for CGT purposes is generally the probate value at the date of death. Once the property transfers to a beneficiary and they subsequently sell it, the beneficiary files their own return.
Trustees:
Trustees disposing of residential property held in trust must file the 60-day return. The CGT rules for trusts differ from those for individuals, including different annual exempt amounts and potentially different rates. If you are a trustee dealing with a property disposal, specialist advice is worth seeking given the complexity.
Companies:
UK-resident companies pay Corporation Tax on property gains rather than CGT, so the CGT on UK Property regime does not generally apply to them. Non-resident companies that disposed of UK residential property before April 2019 may have had NRCGT obligations, but since April 2019 non-resident companies have been within the Corporation Tax regime for UK property gains.
Common filing mistakes and a practical checklist
The errors that cause the most problems are rarely about complex tax law. They are usually simple process mistakes made under time pressure.
Frequent errors to avoid:
- Using the exchange date instead of the completion date as the start of the 60-day window
- Paying via the Self Assessment payment channel instead of the CGT on UK Property payment route
- Omitting allowable costs because invoices were not gathered in time
- Forgetting to apply the correct ownership share for jointly owned properties
- Failing to record the 14-character payment reference and then being unable to reconcile the payment on SA108
- Not including the disposal on the annual Self Assessment at all, which creates a mismatch HMRC will query
The ATT’s users’ guide for the CGT property reporting service specifically flags the payment reference issue as a recurring problem. Paying via the wrong channel is surprisingly common and creates apparent non-payment even when the money has left your account.
For a broader look at avoiding errors on tax returns, the guide to correcting Self Assessment mistakes covers the amendment process if you need to revisit a submitted return.
Pre-submission checklist:
- Confirm the completion date from the solicitor’s completion statement
- Gather all purchase costs, improvement invoices, and sale costs
- Calculate the gain and estimated CGT before opening the return
- Check your Government Gateway credentials work for the CGT on UK Property service
- Enter the correct ownership share
- Apply all relevant reliefs and confirm the annual exempt amount
- Submit the return and save the confirmation
- Record the 14-character payment reference immediately
- Pay via the Property Account payment route, not Self Assessment
- Diarise to include the disposal on your SA108 when your annual return is due
Why acting promptly is always the right call
The 60-day window feels tight, and it is. But the anxiety around it is usually worse than the process itself once you have the documents in front of you.
The cases I find most stressful to resolve are not the ones where someone filed a slightly imperfect return on time. They are the ones where someone waited, hoping the situation would clarify itself, and then faced a penalty notice on top of an already difficult financial position. Filing first and sorting the details second is almost always the better outcome. HMRC’s Time to Pay process exists precisely because they would rather agree a payment plan with someone who has declared their liability than chase someone who has not.
Straightforward cases, a single property sale with clear costs and no complex reliefs, are genuinely manageable to handle yourself if you are organised and act early. Where it gets complicated is with part disposals, non-resident status, trust ownership, or situations where private residence relief only partially applies, as explained in detail by Elamine Lawyers on main residence exemption disputes. Those are the cases where a few hours with an accountant at the start saves a great deal of time and money later.
CWABC can handle your 60-day CGT return for you
Selling a property is stressful enough without navigating HMRC’s online systems under a tight deadline.
CWABC prepares and submits 60-day CGT returns for individuals, landlords, and non-residents across the UK. The service covers the full process: calculating the gain, collating cost evidence, completing and filing the return through the HMRC Property Account, and reconciling the payment on your SA108 at Self Assessment time. If you cannot pay immediately, I can also help you approach HMRC for a Time to Pay arrangement and handle any correspondence that follows.
For urgent cases close to the deadline, get in touch as early as possible. Fees are agreed upfront before any work begins. If you are also looking for ongoing support with landlord bookkeeping or annual tax returns, I can handle both together.
Contact CWABC now to discuss your situation and get the return filed correctly and on time.
Sources
These are the primary GOV.UK and HMRC resources used in this guide. Check them directly for the most current figures and guidance before filing.
Always verify figures, rates, and thresholds on GOV.UK on the date you file. Tax rules change, and the annual exempt amount in particular has shifted in recent years.
This article provides general information about UK tax obligations and is not a substitute for professional advice tailored to your circumstances. Confirm current rules and figures with HMRC or a qualified adviser before filing.
