Report property gains: the 60-day Capital Gains Tax reporting rules for 2026/27

Report property gains correctly and on time to avoid unnecessary penalties, interest and compliance issues with HMRC. If you sell a UK residential property and Capital Gains Tax (CGT) is payable, you will usually need to report the disposal and make a payment on account within 60 days of completion. This requirement is separate from your annual Self Assessment tax return.

Many property owners wrongly assume they can wait until the following 31 January to tell HMRC about the sale. In reality, landlords, second-home owners and anyone selling residential property with a taxable gain often have much earlier reporting obligations. This gain is calculated within the wider CGT and Income Tax framework explained in our ultimate guide to personal tax in the UK.

This guide explains when you need to report Capital Gains Tax on property, how the reporting process works, the current rules for 2026/27 and what happens if you miss the Capital Gains Tax property deadline.

When do you need to report property gains?

You generally need to report a property disposal where all of the following apply:

• You are selling or disposing of UK residential property.
• A Capital Gains Tax liability arises after applying available reliefs and exemptions.
• You are required to submit a UK Property Capital Gains Tax return.

The reporting obligation applies regardless of whether you also complete a Self Assessment tax return later in the year.

For 2026/27, the Annual Exempt Amount for individuals is £3,000. Any taxable gain remaining after reliefs, allowable costs and available losses may be subject to Capital Gains Tax.

Who must report Capital Gains Tax on property?

The 60-day reporting requirement commonly affects:

• Landlords selling buy-to-let properties.
• Individuals selling second homes.
• Owners selling holiday properties.
• People disposing of inherited residential property that has increased in value.
• Individuals selling a former main residence where Private Residence Relief does not fully cover the gain.
• Trustees and personal representatives responsible for qualifying residential property disposals.

If no Capital Gains Tax is payable because the gain is fully covered by reliefs, a 60-day report is not normally required. However, you should still retain records supporting your calculations.

Properties that commonly require Capital Gains Tax reporting

Not every property sale creates a reporting obligation, but several types of property commonly fall within the rules.

Buy-to-let properties

Rental properties are one of the most common situations where owners must complete Property gains tax reporting. Unless reliefs reduce the gain completely, landlords will usually have a reporting obligation.

Second homes

A second home that has never been your only or main residence will usually be subject to Capital Gains Tax if sold at a profit.

Former main residences

If you previously lived in a property before renting it out, Private Residence Relief may reduce part of the gain. However, any remaining taxable gain may still require reporting within 60 days.

Inherited property

Inherited residential property can also create a reporting obligation where the property increases in value after the date of inheritance and is later sold.

How to calculate your property gain before reporting

Before you can submit your return, you need to calculate the taxable gain.

The basic calculation is:

Sale proceeds − purchase cost − allowable costs − qualifying capital improvements = capital gain

You can then deduct:

• Available capital losses.
• Qualifying Capital Gains Tax reliefs.
• The £3,000 Annual Exempt Amount where available.

The remaining amount is your taxable gain. The general principles that apply whenever you sell property form the basis of this calculation, regardless of the property type involved.

Residential property gains are generally taxed at:

Your taxable gain is added to your taxable income when determining which rate applies.

Allowable costs you can deduct

Many sellers pay more Capital Gains Tax than necessary because they overlook allowable deductions.

Common deductible costs include:

• Original purchase price.
• Stamp Duty Land Tax paid when buying the property.
• Solicitor and conveyancing fees.
• Estate agent fees.
• Professional valuation costs directly related to the purchase or sale.
• Qualifying capital improvement expenditure.

Routine maintenance and repair costs are generally not deductible when calculating the capital gain because they are revenue rather than capital expenditure.

How to report Capital Gains Tax on property

Where Capital Gains Tax is payable, you normally need to submit your disposal through HMRC’s online UK Property Capital Gains Tax reporting service.

The report will typically include:

• Property address.
• Date of completion.
• Purchase and disposal values.
• Allowable acquisition and disposal costs.
• Capital improvement expenditure.
• Reliefs claimed.
• Your estimated Capital Gains Tax liability.

After submitting the return, HMRC confirms the amount payable based on the information provided.

The Capital Gains Tax property deadline

The current Capital Gains Tax property deadline is 60 days from the date of completion of the sale.

Both of the following generally need to happen within this period:

• The UK Property Capital Gains Tax return must be submitted.
• A payment on account of the estimated Capital Gains Tax liability must be made.

The completion date—not the exchange date—is normally used when calculating the 60-day reporting period.

What happens if you miss the 60-day deadline?

Failing to report property gains within the required 60-day period can lead to unnecessary costs even where the Capital Gains Tax calculation itself is correct.

If the reporting deadline is missed, HMRC may charge:

• Late filing penalties.
• Interest on unpaid Capital Gains Tax.
• Additional penalties where reporting or payment is significantly delayed.

The longer the delay continues, the greater the potential financial consequences. If HMRC believes the return contains careless or deliberate inaccuracies, further penalties may also apply.

Submitting the return as soon as possible after discovering an error will generally place you in a better position than waiting for HMRC to identify the omission.

HMRC property gain reporting and Self Assessment

Many taxpayers mistakenly believe that completing a Self Assessment tax return removes the need for separate HMRC property gain reporting. This is not the case.

The 60-day reporting requirement and Self Assessment are two separate obligations.

Where a report is required:

• The disposal must first be reported through the UK Property Capital Gains Tax service.
• An estimated payment on account is normally made within the same 60-day period.
• The disposal may then also be included on your Self Assessment tax return if you are required to file one.

Your Self Assessment return allows any differences between the estimated gain reported within 60 days and the final figures for the tax year to be reconciled.

For example, additional capital losses identified later in the year or changes to taxable income may alter the final Capital Gains Tax liability.

Example: reporting the sale of a buy-to-let property

Emma sells a buy-to-let property on 15 July 2026 for £480,000.

She originally bought the property for £310,000 and incurred:

• Purchase legal costs of £3,000.
• Stamp Duty Land Tax of £9,300.
• Estate agent and legal selling costs of £8,700.
• Capital improvement expenditure of £24,000.

After deducting these allowable costs, Emma calculates her taxable gain and determines that Capital Gains Tax is payable.

Because tax is due, she must:

1. Calculate the estimated gain.
2. Submit a UK Property Capital Gains Tax return.
3. Pay the estimated Capital Gains Tax.
4. Complete these steps within 60 days of completion.

Later, when preparing her Self Assessment return, Emma reviews her final figures and makes any necessary adjustments to reconcile the estimated payment already made.

Common mistakes with property gains tax reporting

Errors often arise because sellers are unfamiliar with the reporting process rather than because they intentionally fail to comply.

Common mistakes include:

• Assuming the gain can be reported only through Self Assessment.
• Waiting until the following 31 January to notify HMRC.
• Using exchange rather than completion as the reporting date.
• Forgetting to deduct allowable acquisition and disposal costs.
• Missing qualifying capital improvement expenditure.
• Failing to consider Private Residence Relief where available.
• Using outdated Annual Exempt Amount figures.
• Applying incorrect Capital Gains Tax rates.
• Not retaining evidence supporting the calculation.

Landlords who previously shared occupation with a tenant should also check how PRR works alongside Lettings Relief, since this narrower relief can still reduce the reportable gain.

Keeping accurate purchase records, invoices, legal statements and improvement costs throughout ownership makes the reporting process significantly easier when the property is eventually sold.

How to prepare before selling a property

Preparing before completion can reduce the risk of errors and ensure the reporting deadline is met.

Before selling, consider:

• Estimating the likely capital gain.
• Gathering purchase and sale documentation.
• Collecting invoices for qualifying capital improvements.
• Reviewing available Capital Gains Tax reliefs.
• Checking whether Private Residence Relief applies.
• Identifying any available capital losses.
• Setting aside funds for the estimated tax payment.
• Preparing to submit the return shortly after completion.

A closer look at how selling your home can avoid Capital Gains Tax using PRR explains exactly how much of the gain may be exempt before any reporting obligation arises.

Leaving these calculations until after completion can make it more difficult to meet the 60-day deadline, particularly where historical purchase records need to be obtained.

Key takeaways

Report property gains promptly whenever a UK residential property disposal creates a Capital Gains Tax liability. The reporting obligation is separate from Self Assessment and normally requires both a return and a payment on account within 60 days of completion.

Understanding the rules for Property gains tax reporting, keeping accurate records and calculating the gain before the sale completes can help avoid unnecessary penalties and interest.

Where Capital Gains Tax is due, meeting the Capital Gains Tax property deadline is an important part of remaining compliant with HMRC requirements and ensuring your disposal is reported correctly.

Case Study: Avoiding Penalties by Reporting a Property Sale on Time

A landlord visited our Farringdon office shortly after accepting an offer on a buy-to-let property. They knew property gains tax reporting rules had changed but were unsure when they needed to notify HMRC, how to calculate the taxable gain and whether waiting until their Self Assessment tax return would be sufficient.

During the consultation, we reviewed the property’s purchase records, legal fees, Stamp Duty Land Tax, capital improvements and expected sale proceeds to prepare an accurate HMRC property gain reporting calculation. We explained the 60-day reporting requirement, identified all allowable deductions that could reduce the taxable gain and clarified the difference between the UK Property Capital Gains Tax return and the later Self Assessment return. We also helped the client understand how the estimated payment on account is calculated and the importance of keeping supporting records throughout the process.

As a result, the landlord understood the Capital Gains Tax property deadline, submitted the required information within the 60-day reporting window and avoided the late filing penalties and interest that often arise when sellers mistakenly rely on the Self Assessment deadline.