NOT financial advice - seek advice from a professional for your specific situation

    TaxKilnUK tax guidance
    TaxKilnUK tax guidance

    60-Day CGT Reporting (Residential Property)

    60-Day CGT Reporting (more accurately a compliance OBLIGATION than a relief, but included for completeness) requires INDIVIDUALS (not companies), trustees, or personal representatives who dispose of UK residential property + realise a TAXABLE GAIN to report + pay CGT WITHIN 60 DAYS of completion. The 60-day window applies to completions on/after 27 October 2021 (prior to that date: 30-day window). **NOT required where**: no CGT payable (gain fully covered by PRR / annual exempt amount); commercial property disposals; overseas residential property (different regime). **Process**: create CGT UK Property Account on HMRC online portal (Government Gateway required); calculate gain (sale proceeds minus allowable costs); submit return + pay within 60 days. **Plus**: separately declare gain again in annual Self Assessment SA108, the 60-day payment is a PAYMENT ON ACCOUNT against the final SA liability. **CGT rates 2025/26**: basic rate 18%; higher/additional rate 24% (unchanged by October 2024 Budget which only aligned non-residential rates). **Joint owners**: each must file separate 60-day return for their share.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    What this relief is, in plain English

    60-Day CGT Reporting is the UK's fast-payment regime for residential property disposals. Introduced 6 April 2020 at 30 days; extended to 60 days from 27 October 2021. Designed to bring residential property CGT collection forward by 9-21 months vs the previous annual-SA-only mechanism, improving HMRC's cash flow + visibility on residential property transactions. The mechanic is straightforward: complete a sale → calculate the gain → register + file via HMRC's CGT UK Property Account online portal → pay within 60 days. Then separately declare the same gain again in your annual Self Assessment (SA108), the 60-day payment counts as payment on account against the final SA liability. Key exemptions from the 60-day requirement: no CGT actually payable (gain fully covered by PRR or annual exempt amount); commercial property; overseas residential property. Most owner-occupied main-home sales fall into the PRR-fully-exempt category + don't require 60-day reporting. BTL + second-home disposals routinely require it. Penalties for missed deadlines + careless errors are substantial. Many landlords engage tax advisers for the 60-day return, particularly where PRR apportionment, partial-period letting, joint ownership, or Annual Exempt Amount mechanics create calculation complexity. CGT rates for residential property are 18% (basic) + 24% (higher/additional) in 2025/26, unchanged by the October 2024 Budget which raised non-residential rates to match.

    How it works

    60-day window from completion

    Clock starts on COMPLETION date (calendar days, not working days). Report + pay within 60 days. NOT required if no CGT payable (PRR + AEA fully cover gain), commercial property, overseas residential.

    CGT UK Property Account + calculation

    Register online via HMRC's CGT UK Property Account (Government Gateway needed). Calculate gain: sale proceeds - (purchase price + SDLT paid + estate agent + legal + improvement costs) = gross gain. Deduct PRR + Letting Relief if applicable + Annual Exempt Amount £3,000 (2025/26). Apply rate 18%/24% to taxable portion.

    Self Assessment double-declaration

    Same gain must be declared again on annual SA108 form. 60-day payment counts as payment-on-account against final SA liability. Any over-payment refunded; under-payment due by 31 January following tax year.

    Penalty structure

    Day 1: £100 fixed. >6 months: £300 or 5% of CGT due. >12 months: further £300 or 5%. Late payment: interest + 5% if unpaid after 31 Jan following tax year. Joint owners file SEPARATELY each for own share.

    Who qualifies

    Interactions with other reliefs

    PRR + Letting Relief

    PRR + Letting Relief reduce the taxable gain before 60-day reporting threshold. Where PRR fully covers, no 60-day return needed. Partial PRR: report taxable portion within 60 days.

    Annual Exempt Amount (£3,000 2025/26)

    AEA reduces taxable gain. If gain after PRR + AEA = £0 or negative, no 60-day report needed. AEA cap £3,000/year is shared across all CGT disposals in the year.

    Section 24 + FHL Abolition

    Properties subject to Section 24 (residential let in personal name) + ex-FHLs all subject to 60-day reporting on disposal. The disposal CGT mechanic is unchanged by Section 24 (which affects annual income tax, not CGT).

    BADR (Business Asset Disposal Relief)

    BADR applies to qualifying business asset disposals at reduced CGT rate. Residential rental property typically doesn't qualify for BADR. Where applicable (e.g. FHL pre-April 2025 cessation + 3-year window), the BADR rate would apply but 60-day reporting still required.

    Common mistakes + audit triggers

    Worked example

    Beatrice, Bath - Higher-rate landlord disposing of BTL property in 2025/26 (2025/26)

    Beatrice owns BTL flat in Bath, sole personal name. Bought 2016 for £180,000 (£5,000 SDLT + £1,500 legal). Improved 2020: £20,000 new kitchen + bathroom. Sold June 2025 for £320,000 (£2,500 estate agent + £1,200 legal). Higher-rate taxpayer. Never lived in property (pure BTL).

    Calculation: **Gain calculation:** Sale proceeds: £320,000 - £2,500 - £1,200 = £316,300 net. Cost basis: £180,000 + £5,000 + £1,500 + £20,000 = £206,500. Gross gain: £316,300 - £206,500 = **£109,800**. PRR: NONE (never main home). Letting Relief: NONE (post-April 2020 abolition; no shared occupancy). Annual Exempt Amount 2025/26: £3,000. Taxable gain: £109,800 - £3,000 = **£106,800**. CGT at higher rate 24%: 0.24 × £106,800 = **£25,632**. **60-day reporting:** Completion June 2025. Deadline: 60 days = approximately end of August 2025. Report via CGT UK Property Account; pay £25,632. **SA108 double-declaration:** Same gain declared on Beatrice's 2025/26 SA filed by 31 January 2027. £25,632 already paid (60-day) → no further CGT due on SA reconciliation. **Documentation needed:** - Original purchase deed + completion statement - SDLT receipt + legal-fee invoices from 2016 purchase - 2020 improvement invoices + payment evidence - Sale completion statement + estate agent + legal invoices - All to be retained 6+ years for HMRC enquiry

    Statute reference: Taxation of Chargeable Gains Act 1992 + Finance Act 2019 (as amended FA 2021) TCGA 1992 (CGT base) + Sch.2 FA 2019 (60-day mechanic). HMRC manual: CG14250 onwards.

    Frequently asked questions

    What happens if I miss the Self Assessment deadline?+
    The Self Assessment deadline is 31 January (online filing) for the previous tax year. Miss it and HMRC apply an automatic £100 penalty. Beyond that: £10 per day from 3 months late (capped at £900), 5% of tax due at 6 months late, and another 5% at 12 months late, under Schedule 55 of the Taxes Management Act 1970. If you have a genuine reason (serious illness, bereavement, technical issue with HMRC's systems) you can appeal with evidence; HMRC accepts reasonable excuse appeals in most genuine cases.
    Do I need an accountant or can I file Self Assessment myself?+
    Legally you can file Self Assessment yourself via gov.uk for free, most simple sole-trader returns (single income source, basic expenses) are realistic to self-file. An accountant adds real value when: your trading profit is above £40,000 (extraction-strategy decisions matter), you have multiple income streams (PAYE + self-employment + property + dividends), you've crossed the £90,000 VAT threshold, you're considering incorporation, or you have an HMRC enquiry. Expect to pay £400-£1,500/year for a typical sole-trader accountant; the cost is itself a deductible expense.
    How do payments on account work?+
    When your Self Assessment tax bill exceeds £1,000 for the first time, HMRC requires payments on account toward NEXT year's tax. Half the current bill is due 31 January (alongside the current bill); the other half is due 31 July. So your first January after crossing the threshold can hit with a double-bill: last year's balance + first payment on account. Adjust via Form SA303 if you expect next year's income to drop substantially. Payments on account don't apply if more than 80% of your tax is collected via PAYE.
    I sold my BTL, when does the 60-day clock start?+
    From the COMPLETION date (exchange-of-contracts date for non-conditional contracts; or completion date for conditional contracts). NOT from when you receive the cash, NOT from the date the SDLT was paid by the buyer. Calendar days, not working days, weekends + public holidays count. Example: completion 1 March 2026 → 60-day deadline 30 April 2026 (return + payment due by then). Plan ahead, gathering documentation (purchase price + acquisition costs + improvement costs + sale proceeds + estate agent fees + legal fees) takes time; CGT calculation can be complex with PRR portions, joint ownership, partial periods of letting. Many landlords use a CGT specialist for the 60-day return.
    I sold my main home, do I need to file a 60-day return?+
    Probably not, if the gain is FULLY COVERED by Private Residence Relief (PRR), there's no CGT payable + no 60-day reporting required. Most owner-occupied main-home sales are fully PRR-exempt. Where the gain is PARTIALLY covered by PRR (e.g. period of letting reduces the relief proportion), then 60-day reporting IS required on the non-PRR portion of the gain. Example: home owned 10 years, lived in 7 years, let 3 years → PRR covers 7/10 + last 9 months auto = 7.75/10 of gain. The remaining 2.25/10 of gain is taxable + must be reported within 60 days. The annual exempt amount £3,000 (2025/26) can also reduce the taxable portion below the threshold, confirm before assuming you owe CGT.
    What if I miss the 60-day deadline?+
    Penalty structure: **Day 1 (missed deadline)**: £100 fixed penalty. **>6 months late**: greater of £300 OR 5% of CGT due. **>12 months late**: further £300 OR 5% of CGT due. **Late payment**: interest on unpaid amount + 5% penalty if unpaid after 31 January following tax year. The penalties are NOT trivial for substantial gains. £40,000 CGT bill 12 months late → £300 + 5% = £2,000 + interest. **Reasonable excuse** defence available for genuine delays (e.g. severe illness, unexpected complications), limited in practice. Best practice: file even an estimate if final figures unavailable, then amend later. HMRC accepts estimated returns provided reasonable basis + later reconciliation.
    Do joint owners each file separately or jointly?+
    SEPARATELY. Each co-owner files their own 60-day CGT return for their share of the gain. Joint owners typically own 50/50 (married couples / civil partners default; unmarried per beneficial ownership share). Each calculates their share of the gain + reports own apportioned costs + pays own CGT within 60 days. Form 17 declarations for unequal beneficial ownership between spouses/CPs must have been registered with HMRC BEFORE disposal to affect the apportionment. Joint-ownership scenarios add complexity + often justify professional CGT adviser engagement for the 60-day return preparation.

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