Capital Gains Tax on Property Sales in the UK: Do You Need to Report the Sale Within 60 Days?
Selling a property can be exciting—but it can also leave many people asking the same question:
"Do I have to report my property sale to HMRC within 60 days?"
The answer is not always.
One of the biggest misconceptions surrounding Capital Gains Tax (CGT) is that every UK property sale must be reported to HMRC within 60 days. In reality, the rules are much more specific and depend on the type of property you've sold, your tax residency, and whether any Capital Gains Tax is actually payable.
At Crypto Tax Accountants, we regularly advise clients who are unsure whether they need to submit a Capital Gains Tax on UK Property Return, particularly after selling commercial buildings, buy-to-let properties or second homes.
This guide explains everything you need to know, helping you understand your obligations and avoid unnecessary penalties.
The 60-Day Capital Gains Tax Rule Explained
Since 27 October 2021, UK residents selling certain UK residential properties must report and pay any Capital Gains Tax due within 60 days of completion.
However, this requirement does not apply to every property sale.
The 60-day reporting obligation generally applies if:
You are a UK resident.
You sell or dispose of a UK residential property.
Capital Gains Tax is payable.
The gain is not fully covered by reliefs, losses or exemptions.
If all of these conditions apply, you must submit a Capital Gains Tax on UK Property Return and pay the estimated tax within 60 days of the completion date.
HMRC introduced these rules to bring forward the reporting and payment of Capital Gains Tax on residential property disposals.
What Is Classed as Residential Property?
Residential property generally includes:
Buy-to-let properties
Second homes
Holiday homes
Residential investment properties
Inherited houses or flats
Land forming part of a dwelling, including gardens and grounds
If the property is designed or suitable for someone to live in, HMRC will generally regard it as residential.
Does the 60-Day Rule Apply to Commercial Property?
No—not in most cases.
This is one of the areas where many property owners become confused.
If you are a UK resident and sell a property that is entirely commercial, such as:
Offices
Shops
Warehouses
Industrial units
Factories
Commercial business premises
the 60-day Capital Gains Tax reporting rules do not normally apply.
Instead, the disposal is reported through your Self Assessment Tax Return, using the Capital Gains pages (SA108).
For example, if you sell a factory, warehouse or office building during the 2026/27 tax year, you would usually report the gain on your 2026/27 Self Assessment return, with any Capital Gains Tax becoming payable by 31 January following the end of the tax year.
HMRC's Capital Gains Manual confirms that the 60-day reporting regime for UK residents applies to qualifying disposals of UK residential property, rather than purely commercial property.
What About Mixed-Use Properties?
Some properties contain both commercial and residential elements.
Examples include:
A shop with a flat above.
A public house with owner's accommodation.
Commercial premises incorporating living accommodation.
These are known as mixed-use properties.
The tax treatment can become significantly more complicated, with different reporting rules potentially applying to different parts of the disposal.
If your property is mixed-use, professional advice should always be obtained before completion.
Selling a Residential Property? Follow These Six Steps
If your sale falls within the 60-day reporting rules, here's what you should do.
Step 1 – Check Whether Capital Gains Tax Is Actually Payable
Not every residential property sale results in Capital Gains Tax.
You may qualify for reliefs such as:
Private Residence Relief
Capital losses brought forward
Annual exempt amount (where available)
Other statutory reliefs
Understanding whether tax is actually due is the first step.
Step 2 – Calculate Your Capital Gain
Your calculation should include:
Sale proceeds
Purchase price
Solicitors' fees
Estate agents' fees
Stamp Duty Land Tax paid on purchase (where allowable)
Capital improvement costs
Remember that general repairs and maintenance cannot usually be deducted when calculating a capital gain.
Step 3 – Create Your HMRC Capital Gains Tax on UK Property Account
If required, you (or your accountant) should create a Capital Gains Tax on UK Property Account through HMRC's online service.
This allows the disposal to be reported electronically.
Step 4 – Submit Your Return Within 60 Days
The return must usually be submitted within 60 days of completion.
Missing the deadline may result in:
Late filing penalties
Interest on unpaid tax
Additional compliance issues with HMRC
Step 5 – Pay the Estimated Capital Gains Tax
The estimated Capital Gains Tax should normally be paid within the same 60-day period.
If your figures later change, the position can be adjusted through your Self Assessment Tax Return.
Step 6 – Include the Disposal on Your Self Assessment Tax Return
Even after submitting a 60-day return, you must still include the disposal on your annual Self Assessment Tax Return if you are required to file one.
The annual return confirms the final tax position and reconciles any differences between the estimated and final calculations.
Common Questions We Receive
"I sold a factory. Do I need to submit a 60-day Capital Gains Tax Return?"
Usually no.
A wholly commercial property owned by a UK resident is generally reported through Self Assessment rather than the 60-day reporting system.
"I sold my buy-to-let property."
If Capital Gains Tax is payable, a 60-day return will usually be required.
"I have already submitted the 60-day return."
You may still need to include the disposal on your annual Self Assessment Tax Return.
"The property included both commercial and residential areas."
You should obtain professional advice before reporting the disposal, as the rules are considerably more complex.
Why Professional Advice Can Save You Money
Capital Gains Tax legislation is far more complex than many people realise.
Incorrect reporting can lead to:
HMRC penalties
Interest charges
Overpaying tax
Missing valuable reliefs
Lengthy HMRC enquiries
Whether you're selling a buy-to-let property, commercial premises, inherited property or a mixed-use building, obtaining advice before reporting the disposal can often save both time and money.
At Crypto Tax Accountants, we help clients calculate their gains accurately, claim all available reliefs and ensure the correct reporting method is used from the outset.
Book Your Free Property Tax Review
Unsure whether you need to report your property sale within 60 days?
Not certain whether your property is classed as residential or commercial?
Want reassurance that your Capital Gains Tax calculation is correct before submitting anything to HMRC?
We're here to help.
Book a free, no-obligation consultation with one of our experienced tax advisers. We'll review your circumstances, explain your reporting obligations in plain English and help you understand the most tax-efficient way to deal with your property disposal.
A short conversation today could save you thousands in unnecessary tax, penalties or professional fees later.
📞 Book your free consultation today and get expert advice before you report your property sale.
HMRC References
This article is based on HMRC's published guidance, including:
HMRC Capital Gains Manual (CG73550 onwards), covering the Capital Gains Tax on UK Property reporting regime.
HMRC guidance on reporting and paying Capital Gains Tax on UK residential property.
Disclaimer
This article is provided for general information only and does not constitute legal, tax or professional advice. Tax legislation, HMRC practice and reporting requirements may change, and the correct treatment depends on your individual circumstances. No responsibility is accepted for any loss arising from reliance on this article. Professional advice and protection are provided only to clients of Crypto Tax Accountants under the terms of an agreed engagement. If you are considering selling a property, we recommend obtaining professional advice before completing the transaction or submitting any information to HMRC.
