60-day Capital Gains Tax reporting for residential property disposals

Since April 2020 UK residents who dispose of residential properties need to report and pay the capital gains to HMRC within 60 days of the completion date (formerly 30 days prior to 26 October 2021).

Examples of when a taxpayer will be required to submit a 60-day return include the sale of rental properties, holiday homes or a former home which has only been lived in for part of the ownership period. You do not need to make a 60-day return if the sale results in a loss or no gain, where the gain is fully covered by exemptions such as the annual exemption or Private Residence Relief, or where capital losses are available. 

In addition to submitting the 60-day return, the disposal also needs to be reported on the annual self-assessment tax return after the end of the relevant tax year. A credit is given for the tax paid during the year and if there is any overpayment of tax this will be repaid. Conversely if the tax paid in the 60-day return is less than the actual CGT payable at the year-end, interest will be charged from the actual due date.

If you are thinking of selling a residential property, please get in touch with the team to check whether there is a requirement to report under this 60-day reporting regime. You should collate data relating to the allowable costs such as purchase details and any capital works such as extensions to enable us to calculate the capital gains position for you. If the property has at some point been your primary residence, we will need dates of occupation. We can also advise whether there are any other capital gains tax planning opportunities available to you, such as crystalising other assets which could generate a capital loss.

If you have any specific questions regarding CGT reporting, please contact me.