Last updated: 16 October 2026
Who must report?
If you sell or give away a UK residential property that has not been your only or main home throughout your ownership, such as a buy-to-let, holiday let or second home, you may have a capital gains tax (CGT) liability. UK residents who have tax to pay must report the gain and pay the tax within 60 days of completion using HMRC’s online “report and pay CGT on UK property” service.
The rules at a glance
| Item | Rule for 2026/27 |
| Deadline to report and pay | 60 days after completion |
| CGT rates on residential property | 18% within the basic rate band, 24% above |
| Annual exempt amount | £3,000 |
| Non-UK residents | Must report all disposals of UK land and property within 60 days, even if no tax is due |
| Joint owners | Each owner reports their own share |
Working out the gain
The gain is the sale price minus the purchase price and allowable costs, such as legal fees, estate agent fees, stamp duty paid on purchase and capital improvements. If the property was your main home for part of the time, Private Residence Relief covers that period plus the final nine months. Lettings relief is now only available if you shared the home with a tenant.
Worked example
Lucy sells a buy-to-let flat in June 2026 for £320,000. She bought it in 2012 for £190,000 and has costs of £10,000. Her gain is £120,000. After the £3,000 annual exempt amount, £117,000 is taxable. Lucy has £10,000 of her basic rate band left, so £10,000 is taxed at 18% (£1,800) and £107,000 at 24% (£25,680). She must report and pay £27,480 within 60 days.
Estimating your tax
If you do not know your total income for the year when you file, use a reasonable estimate to work out which rate applies. You then confirm the final figure on your Self Assessment return, and either pay more or claim a refund.
Penalties for late reporting
- £100 if you miss the 60-day deadline
- Further penalties of £300 or 5% of the tax due at six and 12 months
- Late payment interest at 7.75% from the 61st day (rate as at October 2026)
Losses
Capital losses from the same tax year, and losses brought forward, can be deducted when working out the gain. Report them in the 60-day return if you know about them.
Trusts, estates and companies
Trustees and personal representatives must also use the 60-day service. Companies do not, as they pay corporation tax on gains.
Gifts and transfers to family
A gift of a property to anyone other than your spouse or civil partner is treated as a sale at market value, so a 60-day report may be needed even though you received no money. Get a professional valuation at the date of the gift.
Frequently asked questions
What if no tax is due?
UK residents do not need to make a 60-day report if no tax is due, for example because of losses or full PRR.
Do I still need a Self Assessment return?
Yes, if you normally file one or need to confirm the gain.
Does the 60 days run from exchange or completion?
From completion.
Can an accountant file for me?
Yes, with a client authorisation for the CGT service.
Related: the CGT reporting deadline, CGT on disposal of property and CGT on joint property sales.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with reporting property gains. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
