If you sell a UK residential property that isn’t your main home, Capital Gains Tax is charged at 18% on the portion of the gain within your basic-rate band and 24% above it, after the first £3,000 of gains each tax year (the annual exempt amount). If CGT is owed, you must report and pay an estimate within 60 days of completion — not exchange of contracts — using HMRC’s dedicated online property reporting service, separately from your Self Assessment return. Missing the deadline triggers an automatic £100 penalty, rising sharply the longer it's left, plus daily interest on the unpaid tax. If the gain is fully covered by the allowance, losses, or Private Residence Relief, no 60-day report is needed at all.
Two things catch property sellers out more than any other part of Capital Gains Tax: not knowing the 60-day clock starts on completion rather than exchange, and not realising the rates on residential property changed in October 2024. This article covers both properly, with real numbers.
01 The current rates and the allowance
Since the 30 October 2024 Budget, CGT rates on residential property were unified with the rates that already applied to most other assets. There's no longer a separate, higher property rate — the same 18% (basic rate) and 24% (higher rate) apply across the board. Which rate applies to each pound of gain depends on your total taxable income plus the gain itself, measured against the £50,270 basic-rate threshold. Every individual also gets an annual exempt amount of £3,000, free of CGT entirely, before any rate applies.
02 Worked example: a buy-to-let sale
Howard's gain straddles both rates, because his existing income already uses up part of his basic-rate band before the gain is even added. This is the detail a flat "18% or 24%" headline misses — most property sellers with a day job end up paying a blend of both rates on a single sale, not one clean rate.
03 The 60-day rule, explained properly
If CGT is owed on a UK residential property sale, you must report the gain and pay an estimate of the tax within 60 days, using HMRC's dedicated “Report and pay Capital Gains Tax on UK property” online service — completely separate from Self Assessment, even if you already file one every year. The rule has applied since 27 October 2021 (it was a 30-day window before that).
The clock starts on completion, not exchange of contracts. This is the single most common mistake. If contracts exchange on 1 August but completion happens on 1 September, your 60 days run from 1 September — not from the earlier exchange date. Sellers who count from the wrong date routinely find themselves late without realising it.
04 When you don't need to file a 60-day report
This part gets skipped in most explanations: if there's no CGT actually owed — because the gain sits within your £3,000 allowance, is fully absorbed by losses, or is entirely covered by Private Residence Relief for a genuine main home — UK residents don't need to file a 60-day report at all. The obligation is triggered by tax being due, not simply by selling a property.
05 What happens if you miss the deadline
| How late | Penalty |
|---|---|
| Immediately late | £100, automatic |
| After 3 months | £10 per day (up to 90 days = £900) |
| After 6 months | A further £300, or 5% of the tax due if higher |
| After 12 months | Another £300, or 5% of the tax due if higher |
Interest also accrues daily on unpaid tax from day 61, on top of these fixed penalties. For a gain the size of Howard's, drifting even a few months late could easily add several hundred pounds in penalties and interest on top of the CGT itself — entirely avoidable with a same-day filing.
06 Worked example: a gain fully covered by relief
Deborah's £140,000 gain looks alarming on paper, but because the property was genuinely her only home throughout her ownership, Private Residence Relief wipes out the entire gain. No CGT is owed, and no 60-day report is required. This is exactly the scenario people most often over-worry about.
07 Non-UK residents: a stricter rule
Non-UK residents face a tougher version of this rule. They must file a 60-day report for every UK residential property disposal, regardless of whether any CGT is actually owed — a reporting obligation that UK residents simply don't have when no tax is due. This catches out former UK residents who've moved abroad and assume the old domestic rules still apply to them.
08 Frequently asked questions
Yes, if you already file Self Assessment, the disposal also needs including on your annual return, with credit given for tax already paid via the 60-day service. The 60-day report is an upfront payment on account, not a replacement for your annual return.
No. The 60-day rule applies specifically to UK residential property. Commercial property and bare land disposals are reported through the normal annual Self Assessment process instead, with no separate in-year reporting requirement.
Yes, the 60-day report is based on a reasonable estimate at the time. If the actual figures differ once your Self Assessment return is filed, the position is corrected and any balance paid or refunded then, rather than requiring a perfectly exact figure within the 60-day window.
No. The 60-day CGT on UK property service applies to individuals, trustees and personal representatives. Companies report gains on property disposals through their normal Corporation Tax return (CT600) instead.
The original purchase price, stamp duty paid on purchase, legal and estate agent fees on both purchase and sale, and the cost of capital improvements (an extension or a loft conversion, for example, but not routine maintenance or repairs) can all be deducted from the sale price when calculating the gain.
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