Severn Accounting
Tax & Accounting

Cgt on residential property gains – are you aware of the 60 day

By Ali Jaw ·

Capital Gains Tax on residential property can feel complicated, but one deadline often catches property owners off-guard: the 60-day reporting requirement. If you’ve sold a residential property recently—or you’re planning to—understanding this rule could save you from penalties and help you manage your tax bill effectively.

What is the 60-Day Reporting Rule?

From 6 April 2020, HMRC introduced a requirement for residential property sellers to report gains within 60 days of completion. This isn’t optional, and it applies whether you’re selling your main home (if it doesn’t qualify for Private Residence Relief), a buy-to-let property, or a second home.

The rule requires you to notify HMRC of the disposal and calculate any Capital Gains Tax (CGT) owed within two months of the sale completing. Crucially, this is a separate requirement from your Self Assessment tax return—and missing this deadline can trigger penalties, even if your overall tax position is correct.

Who Must Report and When?

You need to report if you’ve disposed of a UK residential property and made a gain. This includes:

  • Investment properties (buy-to-let)
  • Second homes
  • Properties sold for more than the acquisition cost
  • Properties where only part of the residence is your main home

The 60-day clock starts the day after completion. So if your property completes on 15 March, your deadline is 14 May. It sounds straightforward, but many people don’t realise the rule exists until after they’ve missed it.

Interestingly, reporting isn’t required if you’ve made a loss on the sale—though you may still wish to report it to offset gains from other assets in the same tax year.

Calculating Your CGT Liability

The CGT rate for residential property is 20% for higher-rate taxpayers and 10% for basic-rate taxpayers (as of the 2024/25 tax year). You only pay tax on the gain—the difference between what you paid for the property and what you sold it for—minus allowable expenses and any relief you’re entitled to claim.

Allowable expenses include:

  • Purchase costs (solicitor fees, survey, stamp duty)
  • Improvements made to the property (not decoration or repairs)
  • Selling costs (estate agent fees, solicitor fees)

If you’re claiming relief—such as Private Residence Relief for part of the ownership period—you’ll need to calculate this carefully. Many sellers don’t realise they can claim relief for the final nine months of ownership, even if they’ve moved out, which can significantly reduce their gain.

Penalties and Consequences of Missing the Deadline

HMRC takes this seriously. If you miss the 60-day deadline without a reasonable excuse, you face a penalty of £100 for a first breach, and up to £1,000 for repeated failures. You’ll also incur interest on any unpaid tax from the due date.

The good news? HMRC can accept late notifications if you have a reasonable excuse. If you’ve missed the deadline but realise this now, don’t panic—contact HMRC to discuss your circumstances. However, don’t assume you’ll automatically receive leniency. It’s far better to report on time.

How to Report

You can report through HMRC’s online service or by contacting them directly. You’ll need to provide:

  • Details of the property (address, date acquired, date of disposal)
  • The sale price and acquisition cost
  • Details of any expenses
  • Whether you’re claiming any relief

Many people find it helpful to work with an accountant for this process, particularly if the property is complex (joint ownership, multiple acquisitions, significant improvements) or if relief calculations are involved.

Get Ahead of the Game

If you’re planning to sell a residential property, mark the 60-day deadline in your calendar now. If you’ve already sold, check whether you’ve reported—it’s easy to overlook a requirement you didn’t know existed.

Residential property CGT is one area where a small mistake can snowball into penalties and interest charges. The silver lining is that the 60-day requirement, whilst strict, is very clear: report within 60 days, avoid complications, and sleep soundly knowing you’ve complied with HMRC.

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