Back to News

Selling or Gifting Residential Property? Capital Gain Tax Guide for Reporting in 60 Days

Did you know you have 60 days from the date of completion to digitally report the gain to HMRC and pay the tax due?

Wilson Nesbitt’s expert tax team, led by Director Liam Coulter can guide you on all aspects, including:

  • Calculating the potential gain right at the outset
  • Suggest ways to reduce the gain and tax payable
  • Complete and submit the CGT return to HMRC on your behalf

Liam answers clients most commonly asked questions below;

Who needs to complete a 60-day CGT return?

The 60-day CGT reporting rules apply to UK resident:

  • Individuals
  • Trustees
  • Personal representatives
  • ·Partners in partnerships and limited liability partnerships
  • Joint owners of property

What if I’m a Non UK-Resident?

In most cases, Non-UK Residents must file CGT returns on disposal of land and property within the scope of the reporting regime even if no CGT is payable.  In addition, non-UK residents must also file returns and make tax payments in respect of disposals of non-residential UK property and interests in certain ‘property-rich’ companies as well as UK residential property.

You may need to submit a 60-day return if for example you dispose of a:

  • Property you’ve never lived in,
  • Property you’ve only lived in for part of the time you owned it,
  • Holiday home, or
  • Rental property

The 60-day reporting rules don’t apply where there’s no CGT to pay on the disposal, such as:

  • The disposal is a ‘no gain, no loss’ transfer between spouses or civil partners,
  • Any gain on the disposal is fully covered by exemptions or reliefs, such as the annual exemption or private residence relief,
  • Any gain is covered by brought forward losses or losses in the same tax year as the disposal if realised before the disposal, or
  • The property is sold at a loss
  • Your only or main residence provided you have lived in the property throughout the time you’ve owned it.

How do you report the gain?

Disposals are reported to HMRC digitally through a taxpayer’s ‘Capital Gains Tax on UK property account’. You must set up your own account via the Government Gateway, and you can then choose to either report the disposal yourself or authorise an advisor such as Wilson Nesbitt to report the disposal on your behalf.

If the property is in joint names then all owners will need to prepare and submit a 60-day CGT return in order to report their share of the gain.

How do I pay the CGT to HMRC?

An estimate of the CGT due on the disposal must be paid, either through the taxpayer’s Capital Gains Tax on UK property account or by bank transfer or cheque.

What’s the deadline for reporting and paying CGT on the disposal and what happens if I miss the deadlines?

You have 60 days from the date of completion (not the date of exchange of contracts) to report the property disposal and pay the estimated CGT to HMRC.

Late filing penalties may be charged, together with interest on any unpaid tax.

Late filing penalties Late payment penalties
After 60 day deadline£100 30 days after the 31 January following the end of the tax year of disposal5% of the tax due
More than 6 months lateGreater of £300 and 5% of tax due 5 months after first penalty5% of the tax due
More than 12 months lateGreater of £300 and 5% of tax due 11 months after first penalty5% of the tax due

Additionally, HMRC has the discretion to charge daily penalties of £10 per day up to a maximum of 90 days if the return is more than three months late.

Interest will be charged if the tax remains unpaid after 60 days.

*The above advice reflects the tax rules currently in force and may be subject to change in the upcoming October 2024 budget.*

Get in Touch

Wilson Nesbitt’s expert Tax team can provide early advice, reduce the tax payable where possible and take the hassle of reporting out of your hands.

For further information and a fee quote contact Director Liam Coulter and our team; capitalgainstax@wilson-nesbitt.co.uk

Get in touch

To find out more about how we can help you with your query, please contact us.