UK CGT 60-Day Property Reporting 2026/27: Complete Guide

What the 60-Day Rule Requires

Since 27 October 2021, UK residents who sell UK residential property and realise a taxable capital gain must report that gain to HMRC and make a payment on account of the Capital Gains Tax due within 60 days of the completion date, not the exchange date. This is a much faster timetable than the normal Self Assessment cycle, where a gain made in, say, June would otherwise not need to be paid until the following January.

The rule exists specifically for residential property because gains on second homes and rental properties are often large relative to a taxpayer's other income, and HMRC wanted the tax collected close to the point of sale rather than up to 18 months later under the old system.

Who the Rule Applies To

The 60-day rule catches most disposals of UK residential property where tax is actually due, but there are important exceptions.

• Second homes and holiday homes: Almost always within scope, since Private Residence Relief does not apply to a property that was never the main home.
• Buy-to-let and other rental property: Within scope on the full gain, subject to any letting relief or period of owner-occupation that qualifies for partial relief.
• Inherited property later sold at a gain: Within scope if the property has increased in value since the date of death (probate value), even though no tax was due on inheriting it.
• Main home fully covered by Private Residence Relief: Outside scope, because no taxable gain arises in the first place.
• Non-UK residents: Within scope for any UK land or property, residential or otherwise, and must report within 60 days even if no tax is due.

Filing the CGT UK Property Return

The return is filed through a dedicated HMRC digital service called the CGT on UK Property account, which is entirely separate from the main Self Assessment system, even for people who already file a Self Assessment return every year. The taxpayer (or their authorised agent) sets up the account using a Government Gateway ID, enters the sale details and allowable costs, and the service calculates the estimated gain and tax due based on the figures entered.

Payment is normally made online at the same time as filing, and for jointly owned property, each owner must file their own separate return reporting their own share of the gain, even though the underlying sale is a single transaction.

Reconciling on Self Assessment

Filing the 60-day return does not remove the need to also declare the disposal on the Self Assessment tax return for the year in which the sale completed. This step reconciles the estimated figures submitted within 60 days against the taxpayer's full picture for the year, including any other gains, losses, or changes in total income that affect whether gains are taxed at the basic or higher CGT rate.

If the Self Assessment calculation shows more tax is due than was paid within 60 days, the balance is collected in the normal January payment; if less is due, any overpayment is refunded or offset against other liabilities.

Penalties for Missing the Deadline

A fixed late filing penalty applies automatically if the 60-day return is not submitted on time, with a further fixed penalty if the delay continues beyond three months, and additional tax-geared penalties for very long delays. Interest also accrues daily on any tax paid late, calculated from the original 60-day deadline regardless of when the Self Assessment return is eventually filed.

Because sellers are often focused on the practicalities of moving house, this deadline is one of the most commonly missed HMRC filing obligations connected to property, and conveyancing solicitors do not automatically handle the CGT filing as part of the sale process.

Worked Example

Priya sells a buy-to-let flat that completes on 10 May 2026. She bought it for £220,000 and sells it for £310,000, with £8,000 of allowable selling and legal costs, giving a gain of £82,000. After deducting the £3,000 annual exempt amount, £79,000 is taxable. Priya is a higher-rate taxpayer, so the whole gain is taxed at 24%, giving Capital Gains Tax of £18,960.

Priya must report the sale and pay an estimate of this tax through the CGT on UK Property service by 9 July 2026 (60 days after completion), and then include the disposal again on her 2026/27 Self Assessment return, due by 31 January 2027, to confirm the final figure.

Common Pitfalls

• Counting from exchange instead of completion. The 60-day clock starts on the completion date, not the earlier exchange of contracts, and sellers sometimes miscalculate the deadline as a result.
• Assuming the conveyancing solicitor will file it. Conveyancers handle the legal transfer, not the CGT return, and the seller (or their tax agent) remains responsible for reporting and paying on time.
• Forgetting the second Self Assessment entry. Filing the 60-day return is not the final step; the sale must still be declared again on the annual tax return.
• Underestimating costs and not correcting later. Where final figures were not available at the 60-day stage, taxpayers sometimes forget to true up the calculation on Self Assessment, leaving tax overpaid or underpaid.
• Missing joint-ownership filing requirements. Each co-owner needs their own separate return; one partner filing on behalf of both is not sufficient.