Since April 2020, UK residential property disposals that result in a capital gain must be reported to HMRC within 60 days of completion. A payment on account of the estimated CGT is also due within the same 60-day window. This applies to individuals, trustees, and personal representatives disposing of UK residential property. It also applies to non-UK residents disposing of any UK property, residential or commercial, regardless of whether a gain arises.
You do not need to file a 60-day return if the entire gain is covered by Private Residence Relief and no tax is due. However, even this has exceptions — if PPR does not cover the full gain, or if the relief calculation is not straightforward, a return is still required. If you are unsure whether you need to file, assume you do until a specialist has confirmed otherwise.
The penalties for late filing are automatic. If the return is filed up to 6 months late, HMRC charges a fixed penalty of GBP100. Beyond 6 months, further penalties accrue based on the tax outstanding. Interest on the tax runs from day 61 regardless. The penalties apply even if the return is only a single day late and even if the amount of tax is relatively modest. There is a reasonable excuse provision, but HMRC interprets this narrowly — not knowing about the requirement is unlikely to be accepted as a reasonable excuse.
We calculate the capital gain including all allowable costs, improvement expenditure, and applicable reliefs. We prepare and file the 60-day CGT return with HMRC. We calculate the payment on account and advise how it interacts with your annual self-assessment return. Where the return has also been included in a self-assessment filing, we reconcile the two to avoid double payment.
Send us the completion statement from the sale, the original purchase documents, and any invoices for improvement work carried out during ownership.
We calculate the gain, identify all allowable costs, and apply any reliefs -- including PPR, letting relief, annual exempt amount, and available capital losses.
We prepare the 60-day CGT return and file it with HMRC before the deadline.
We calculate the payment on account and confirm how the gain will be treated in your annual self-assessment return to ensure there is no double payment.
Tell us what you need help with. Our team will contact you to agree a suitable time to discuss your property accountancy or tax enquiry.
