Failing to Report Property Gains Within 60 Days: What Happens?
Individuals selling second homes, landlords disposing of buy-to-let property, those selling former main residences with partial Capital Gains Tax (CGT) exposure, and executors or trustees handling property disposals.
When the 60-day reporting rule applies, how to report and pay CGT, and what happens if the deadline is missed.
UK residential property disposals where CGT is due must be reported and paid within 60 days of completion. This is separate from Self Assessment. Missing the deadline can trigger automatic penalties and interest.
When Does the 60-Day Rule Apply?
A higher CGT rate applies to gains on the disposal of residential property (apart from a principal private residence). In the Spring Budget 2024, the Chancellor announced a reduction in the higher rate that exists for residential property to 24% (from 28%) from 6 April 2024. These rates apply to higher-rate taxpayers as well as to trustees and personal representatives. The lower rate that applies to basic-rate taxpayers remains unchanged at 18% for the current 2024-25 tax year.
Most people are aware that they usually do not have to pay CGT when they sell their qualifying residential property that is used wholly as a main family residence. However, other sales of property that are not a principal private residence (PPR) will be subject to CGT.
This includes:
- buy-to-let properties
- business premises
- land
- inherited property
The deadline for paying any CGT due on the sale of a residential property is 60 days. This means that a CGT return must be completed, and a payment on account of any CGT due should be made within 60 days of the transaction’s completion. This applies to UK residents selling UK residential property where CGT is due. There are various reliefs available from CGT for the sale of qualifying business assets.
How to Report and Pay CGT
Where CGT is payable:
- A UK Property Account must be used to submit the return to HMRC.
- The estimated CGT liability must be calculated.
- Payment must be made within the same 60-day window.
This requirement applies even if you complete a Self Assessment tax return later in the year.
Common Real-World Scenarios
- Rental property sale: Gains are usually chargeable and require 60-day reporting.
- Second homes: PRR does not apply, so CGT is typically due.
- Former main residence partly let: Partial relief may apply, but a gain may still be taxable.
These are the most common situations in which the 60-day rule applies.
What Happens If You Miss the Deadline?
Late reporting may result in:
- Automatic late filing penalties
- Late payment interest on outstanding tax
- Potential additional penalties for continued delay
Penalties arise under statutory rules. They are not discretionary in routine cases.
In addition, inaccurate or incomplete reporting may increase the likelihood of HMRC enquiry.
Interaction With Self Assessment
The 60-day reporting requirement does not replace Self Assessment.
- The disposal must still be included in your annual tax return where required.
- Any difference between the estimated and final liability is reconciled through Self Assessment.
Assuming you can wait until 31 January to report the gain is a common and costly misunderstanding.
Property Gain to Report? Speak to a CGT Specialist
Failing to report UK property gains within the 60-day deadline can trigger unnecessary penalties and interest, especially where second homes, rental properties, or partially exempt main residences are involved. If you are unsure whether the rules apply to you, speaking to a tax accountant in London can prevent costly mistakes. Cigma Accounting, based in Farringdon and supporting clients across Clerkenwell and Barbican, helps individuals calculate liabilities accurately and submit compliant returns on time.
Property disposals often involve more than just completing a form — relief claims, payment calculations, and interaction with your self-assessment return must all align. Working with experienced advisers providing capital gains tax advice London ensures you understand your exposure before HMRC does. Cigma Accounting supports property owners with clear, practical guidance, with physical offices across London, so you can meet reporting deadlines confidently and avoid unnecessary compliance risks.
SOLD A PROPERTY AND NOT YET REPORTED THE GAIN?
UK residential property disposals often require reporting and payment within strict time limits. Missing the deadline can trigger penalties and interest, even if no tax is ultimately due. Early action helps you stay compliant and avoid unnecessary costs.
Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.
