The 60-day capital gains tax rule means that if you sell a UK residential property and there is CGT to pay, you must report the sale to HMRC and pay the estimated tax within 60 days of completion. It applies to second homes, buy-to-lets and inherited property, but not to a sale that is fully covered by Private Residence Relief. Non-residents must report every disposal of UK property or land within 60 days, even when no tax is due.
The 60-day deadline catches out thousands of sellers every year, because it runs from completion, not the end of the tax year, and it applies on top of your normal Self Assessment return. You can report and pay Capital Gains Tax on GOV.UK using a UK property account.
This guide explains who the 60-day capital gains tax rule applies to, how to calculate and pay the tax, a worked example for 2026/27, the penalties for missing the deadline and how it fits with your Self Assessment return.
What Is the 60-Day Capital Gains Tax Rule?
Since 27 October 2021, UK residents who sell a UK residential property at a taxable gain must file a UK property return and pay the CGT on account within 60 days of the completion date. Before that date the deadline was 30 days, and before April 2020 the gain was simply reported on the Self Assessment return the following January.
The 60-day capital gains tax rule covers:
- Second homes and holiday homes sold at a gain.
- Buy-to-let and other rental properties. See our guide to CGT when selling a buy-to-let.
- Inherited property sold for more than its probate value. See when you pay CGT after inheriting a property.
- Gifts of residential property to anyone other than a spouse or civil partner, which are treated as a sale at market value.
- A former home where only part of the gain is covered by Private Residence Relief.
When the 60-Day Capital Gains Tax Rule Does Not Apply
UK residents do not need to file a 60-day return if there is no CGT to pay. That is the case when:
- The property was your only or main home throughout and Private Residence Relief covers the whole gain.
- The gain is within your £3,000 annual exempt amount.
- You made a loss, or losses brought forward cover the gain.
- You sold to your spouse or civil partner, which is a no gain, no loss transfer.
- The asset is not UK residential property, such as shares or commercial property. These are reported on your Self Assessment return instead.
Non-residents are different under the 60-day capital gains tax rule. If you live abroad, you must report every sale of UK property or land within 60 days, whether residential or commercial, and even if there is no tax to pay. See our guide on whether non-residents have to pay CGT in the UK.
How to Report and Pay Within 60 Days
- Gather your figures. Completion statement, purchase price or probate value, purchase and sale costs, and receipts for improvements.
- Work out the gain. Sale price minus base cost and allowable costs, then deduct any reliefs and your annual exempt amount. Our property CGT calculator gives a quick estimate.
- Estimate your income for the tax year. This decides how much of the gain falls in the 18% band and how much at 24%.
- Create a UK property account. Sign in with your Government Gateway ID and set up the account on GOV.UK.
- File the return and pay. HMRC gives you a payment reference. The tax must reach HMRC within 60 days of completion.
Under the 60-day capital gains tax rule, joint owners each file their own return for their share of the gain. Agents can file on your behalf, which many sellers find easier. Our step-by-step guide shows how to report and file capital gains tax to HMRC.
Worked Example: Selling a Buy-to-Let in 2026/27
Priya bought a flat in 2014 for £180,000, paying £4,000 in purchase costs. She sells it with completion on 10 November 2026 for £265,000, paying £5,000 in selling costs. She earns £40,000 a year, leaving £10,270 of her basic rate band unused.
| Step | Amount |
|---|---|
| Sale price | £265,000 |
| Less purchase price and costs | (£184,000) |
| Less selling costs | (£5,000) |
| Gain | £76,000 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £73,000 |
| £10,270 at 18% | £1,849 |
| £62,730 at 24% | £15,055 |
| Total CGT | £16,904 |
Priya must file her UK property return and pay £16,904 by 9 January 2027, 60 days after completion. She then reports the sale again on her 2026/27 Self Assessment return by 31 January 2028. If her final income turns out lower or higher than estimated, the tax is adjusted there. Current bands are explained in our guide to CGT rates for 2026.
Penalties Under the 60-Day Capital Gains Tax Rule
| How late | Penalty |
|---|---|
| 1 day late | £100 fixed penalty |
| 6 months late | Further £300 or 5% of the tax due, whichever is higher |
| 12 months late | Another £300 or 5% of the tax due, whichever is higher |
| Tax paid late | Late payment interest from day 61 |
If you have already missed the deadline, file as soon as possible to limit penalties and interest. A reasonable excuse, such as serious illness, may lead HMRC to cancel a penalty. Our guide on what to do if your CGT deadline was missed explains the options.
How the 60-Day Return Fits With Self Assessment
Under the 60-day capital gains tax rule, the return is a payment on account, not the final word. If you normally file a Self Assessment return, you must still include the property sale there, and the tax already paid is credited against your final bill. If you do not normally file Self Assessment, the 60-day return can be your only return, unless your estimate needs correcting or you have other income to declare.
Keep the completion statement, purchase documents, receipts for improvements and your 60-day return confirmation for at least four years. For help with the full process, see our CGT returns service.
Frequently Asked Questions
What is the 60-day rule for capital gains tax?
If you sell a UK residential property and owe CGT, you must report the sale and pay the estimated tax to HMRC within 60 days of the completion date. Non-residents must report all UK property and land disposals within 60 days, even if no tax is due.
Does the 60-day rule apply to my main home?
Not if Private Residence Relief covers the whole gain. If part of the gain is taxable, for example because you let the property or did not live there throughout, you must report within 60 days.
Does the 60 days start from exchange or completion?
From completion. The date of disposal for CGT is normally exchange, but the 60-day reporting and payment deadline runs from the completion date.
What happens if I miss the 60-day CGT deadline?
HMRC charges a £100 late filing penalty, with further penalties at six and twelve months, plus interest on late payment. File as soon as you can to limit the cost.
Do I still need to do a Self Assessment tax return?
If you are already in Self Assessment, yes. You report the sale again on your return and the tax paid within 60 days is credited. If you are not, the 60-day return may be enough.
Can an accountant file my 60-day CGT return?
Yes. An agent can calculate the gain, claim reliefs and file the UK property return for you, which reduces the risk of errors and missed deadlines.
Conclusion
The 60-day capital gains tax rule is simple in principle but easy to miss: if you sell UK residential property at a taxable gain, report and pay within 60 days of completion. Non-residents must report every UK property sale, even with no tax to pay.
Start the calculation before completion, estimate your income for the year, and set up your UK property account early so the deadline does not catch you out.
For help with a 60-day return, speak to our capital gains tax specialists. Call us on +44 (0)1204 859315 or send us your question for a free initial consultation and a fixed-fee quote within 24 hours.
