Severn Accounting
Tax & Accounting

60 day window to report residential property gains

By Ali Jaw ·

Selling a residential property can feel like crossing the finish line after a long race. But if you’ve made a gain on that sale, HMRC has given you a relatively short window to report it – just 60 days. Missing this deadline can result in penalties, so it’s worth understanding what you need to do and when.

This requirement applies to UK residents who sell residential property and realise a chargeable gain. Whether it’s a second home, a buy-to-let property, or a property you’ve inherited, the reporting rules are strict. In this post, we’ll walk you through the 60-day reporting window, who needs to report, and what happens if you don’t get it right.

Who Needs to Report Within 60 Days?

The 60-day reporting requirement applies if you’re a UK resident and you sell residential property at a gain. This includes:

  • Second homes or holiday lets
  • Buy-to-let properties
  • Inherited properties
  • Property held in a trust
  • Jointly owned properties

Crucially, this does not include your main residence if you qualify for Principal Private Residence Relief (PPRR). If you’ve lived in the property as your only or main home for the entire period you owned it, you won’t owe Capital Gains Tax (CGT) and therefore won’t need to report the sale within 60 days.

However, if you’ve let out part of the property, worked from home, or rented it out for any period, your relief may be restricted, and you could face a reporting requirement.

What Exactly Is the 60-Day Window?

The 60 days runs from the date of completion of the sale. If you exchange and complete on the same day, that’s your day one. You then have 59 more days to report to HMRC. If the 60th day falls on a weekend or bank holiday, HMRC extends it to the next working day.

This is a tight timeframe, particularly if you’re using a tax adviser who needs time to gather information and calculate your exact gain. It’s wise to start gathering paperwork as soon as exchange is agreed.

What Do You Need to Report?

When you report, you’ll need to provide HMRC with:

  • The sale price and completion date
  • Your original purchase price and date
  • Costs of acquisition (legal fees, stamp duty, etc.)
  • Costs of disposal (agent fees, legal fees)
  • Any enhancement expenditure (improvements that added value to the property)
  • The amount of any principal private residence relief claimed
  • Your chargeable gain or loss

For the 2024/25 tax year, the CGT annual exemption is £3,000. This means you only pay tax on gains above this threshold. The CGT rate on residential property is 20% for higher-rate taxpayers and 8% for basic-rate taxpayers (as of April 2024), though this varies depending on when you acquired the property.

How to Report Within 60 Days

The method depends on your circumstances:

If you’re not normally self-employed or don’t usually file a tax return, you’ll need to report using HMRC’s online service or by contacting them directly. You cannot simply wait and include it on a future Self Assessment return – the 60-day window is separate and mandatory.

If you already file a Self Assessment tax return, you can report the gain on your tax return. However, if the 60-day window falls before your tax return deadline, you should report it separately to stay compliant.

If you use a tax adviser, they can report on your behalf, but they’ll need your information promptly. Don’t wait until late in the window to provide details.

Failure to report within 60 days can result in a penalty of up to 100% of the unpaid tax, though HMRC’s usual approach is to impose a percentage-based penalty depending on the severity of the delay.

Getting It Right From the Start

The property market moves quickly, and so does this reporting requirement. The best approach is to:

  • Notify your accountant or tax adviser as soon as exchange is agreed
  • Gather all documentation: purchase paperwork, proof of costs, improvement receipts
  • Work through the gain calculation early, well before day 60
  • Report promptly – don’t cut it fine

Many property sellers underestimate how much they’ve spent on improvements or overlook allowable costs, which can inflate their gain unnecessarily. A proper calculation, done in good time, ensures you pay the right amount of tax and meet your legal obligations.

For tailored advice, contact Severn Accounting — we’re here to help.