Capital Gains Tax on Property Sales - The 60 Day Rule You Can't Miss

Selling a residential property that isn't your main home? There's a strict deadline you need to know about, and missing it can mean penalties, even if you don't owe any tax yet.

What triggers this rule?

If you sell (or otherwise dispose of) a UK residential property that has made a taxable gain, for example, a rental property, a second home, or an inherited property you've since sold - you may need to report and pay Capital Gains Tax (CGT) within 60 days of completion.

This applies to:
- Landlords selling rental properties
- People selling second homes
- Anyone disposing of residential property that isn't covered by Private Residence Relief (i.e., not your main home)

The 60-day deadline

From the date of completion (not exchange), you have 60 days to:

1. Calculate the gain
2. Report it to HMRC using the UK Property Account service
3. Pay any CGT owed

This is separate from your regular Self Assessment tax return — even if you'll also report the sale on your annual return later, the 60-day report and payment still needs to happen first.

What counts as a gain?

Broadly, your gain is the difference between what you sold the property for and what you originally paid for it, minus allowable costs such as:

- Estate agent and legal fees (buying and selling)
- Costs of improvements (not routine maintenance)
- Stamp duty paid on purchase

You may also be entitled to reliefs depending on your circumstances, which can reduce the taxable gain.

What happens if you miss the deadline?

HMRC charges penalties for late reporting, even if the tax itself is eventually paid correctly. The longer the delay, the higher the penalty, plus interest accrues on any unpaid tax from the deadline date.

Why this catches people out

Many people don't realise this rule exists until after they've already sold, especially if they're used to the "normal" Self Assessment timeline. By the time they think about it in the new tax year, they've often already missed the 60-day window.

What to do if you're selling a property

If you're planning to sell a rental property or second home, get in touch before completion if possible. Having your figures and reliefs worked out in advance means the 60-day report can be filed quickly and accurately, without the stress of scrambling after the sale.

If you've already sold and aren't sure whether you've missed the deadline, don't wait - the sooner it's sorted, the less the penalties add up.