If you sell a property in the UK after 6 April 2026, you will have 30 days to report the gain to HMRC and pay the Capital Gains Tax due. Not 60 days. Not at the end of the tax year. Thirty days from the date of completion.
This is the single biggest change to the hmrc cgt reporting requirements 2026 that affects property sellers. The previous 60-day window for UK residential property gains is being replaced by a universal 30-day rule that covers all property disposals: residential, commercial, land, and second homes.
As ICAEW qualified accountants working with property owners across Manchester, Leeds, Bristol and London, we are already helping clients prepare for this shift. If you own a rental flat in Salford Quays, a holiday cottage in the Lake District, or a commercial unit in Birmingham's Jewellery Quarter, these rules apply to you.
Who Is Affected by the New CGT Reporting Rules?
The 30-day reporting requirement applies to any individual who sells or disposes of a UK property and makes a capital gain. The key groups affected are:
- Landlords selling a buy-to-let property
- Second home owners selling a holiday property or city flat
- Property developers selling individual properties (not trading stock)
- Anyone selling commercial property or land
- Trustees selling property held in a trust
- Personal representatives selling a deceased person's property
Your main home is still exempt under Private Residence Relief. But if you have let it out, used part of it for business, or owned a garden larger than 0.5 hectares, you may still have a reporting obligation.
What Was the Old 60-Day Rule?
Since 6 April 2020, UK residents selling residential property have had to report the gain within 60 days of completion. The reporting was done through HMRC's online Capital Gains Tax on UK Property service. Payment of the estimated tax was due at the same time.
That 60-day window was already tight. Many property owners missed it and faced penalties. The new 30-day window halves that time.
Commercial property and land disposals were not covered by the old 60-day rule. Those gains were reported on the annual self assessment tax return, due by 31 January after the end of the tax year. From April 2026, that changes completely.
What Changes From 6 April 2026?
The hmrc cgt reporting requirements 2026 introduce three major changes:
1. 30-Day Reporting Window for All Property
Every disposal of UK land or property by an individual must be reported to HMRC within 30 days of completion. This includes:
- Residential property (second homes, buy-to-lets, inherited properties)
- Commercial property (offices, shops, industrial units, warehouses)
- Land (development land, agricultural land, building plots)
- Part disposals and grants of options over land
2. Payment Within 30 Days
You must pay the estimated Capital Gains Tax within the same 30-day window. HMRC will charge interest on late payments from day 31. Late payment penalties apply from day 31 as well.
3. No More Self Assessment Deferral
For commercial property and land sales, you can no longer wait until your 31 January self assessment deadline. The gain must be reported and paid within 30 days. You then adjust the figures on your annual tax return if needed.
How Does the 30-Day Reporting Work?
The process is similar to the existing 60-day residential property service, but with tighter deadlines. Here is how it works in practice:
Step 1: Complete the sale. The completion date is the trigger.
Step 2: Calculate your gain. You need the sale price, purchase price, allowable costs (legal fees, stamp duty, estate agent fees, improvement costs), and any reliefs (Private Residence Relief, Letting Relief, Business Asset Disposal Relief).
Step 3: Log into your HMRC online account and use the Capital Gains Tax on UK Property service. You will need your property details, dates, costs, and the estimated gain.
Step 4: Pay the tax. You can pay by bank transfer (Faster Payments, BACS, CHAPS), debit card, or corporate credit card. Personal credit cards are not accepted.
Step 5: Keep records. HMRC may check your calculation. You will also need the figures for your self assessment return, where you declare the final gain.
What Happens If You Miss the 30-Day Deadline?
HMRC charges penalties for late reporting. The penalty structure is:
- Up to 6 months late: £100
- 6 to 12 months late: the higher of £300 or 5% of the tax due
- Over 12 months late: the higher of £300 or 5% of the tax due, plus additional penalties
On top of the penalties, HMRC charges interest on late payments from the date the tax was due (day 31 after completion). The interest rate is the Bank of England base rate plus 2.5%.
If you miss the deadline because you did not know about the rule, HMRC may still charge penalties. Ignorance is not a reasonable excuse in most cases.
Worked Example: Selling a Buy-to-Let in Manchester
Let us run through a real example. You bought a two-bedroom flat in Manchester's Northern Quarter in 2018 for £185,000. You let it out. In May 2026, you sell it for £310,000.
Your costs: £3,200 in legal fees on purchase, £1,800 in estate agent fees on sale, £2,500 in SDLT on purchase. You spent £12,000 on a new kitchen in 2022 and £8,000 on a new bathroom in 2023. Both are allowable improvements.
Your total allowable costs: £185,000 + £3,200 + £1,800 + £2,500 + £12,000 + £8,000 = £212,500.
Your gain: £310,000 minus £212,500 = £97,500.
You have not lived in the property, so no Private Residence Relief. No Letting Relief (abolished from April 2020 for most cases). Your annual exempt amount for 2026/27 is £3,000.
Taxable gain: £97,500 minus £3,000 = £94,500.
You are a higher rate taxpayer, so CGT on residential property is 24%. Tax due: £94,500 x 24% = £22,680.
Completion is on 15 May 2026. You must report the gain and pay £22,680 by 14 June 2026. That is 30 days later.
If you miss that date, you face a £100 penalty immediately. If you are still late at 15 November 2026, that rises to £300 or 5% of £22,680, whichever is higher.
Does This Apply to Companies?
No. Companies pay Corporation Tax on chargeable gains, not Capital Gains Tax. The reporting deadlines for companies are different. Companies report property gains on their Corporation Tax return (CT600), due 12 months after the accounting period end.
This change affects individuals, trustees, and personal representatives only.
If you sell a property through your limited company, the gain is included in the company's Corporation Tax computation. The 19% or 25% Corporation Tax rate applies, not the 18% or 24% CGT rates.
What About Partnerships?
Partnerships are treated as transparent for tax purposes. Each partner reports their share of the gain individually. If you are in a property partnership, each partner must report their share within 30 days of the disposal.
The partnership itself does not report the gain. Each partner uses their own HMRC online account.
How Do You Calculate the Gain Accurately?
The 30-day window means you need to calculate the gain quickly. You cannot wait until your accountant prepares your year-end accounts. You need the figures within days of completion.
Key points for accurate calculation:
- Acquisition cost: What you paid, plus legal fees, SDLT, survey costs, valuation fees
- Disposal costs: Estate agent fees, legal fees, auction fees, advertising costs
- Enhancement costs: Capital improvements that add value or extend the property's life. Not repairs or maintenance
- Reliefs: Private Residence Relief, Letting Relief (limited cases), Business Asset Disposal Relief (if you owned the property through a trading company or as a sole trader)
- Annual exempt amount: £3,000 for 2025/26 and 2026/27
If you are unsure about any of these figures, speak to your accountant before the 30 days run out. You can submit an estimated figure and adjust it on your self assessment return. But underestimating the gain and paying too little tax will trigger interest.
What Happens If You Do Not Own the Property Outright?
Joint owners each report their share. If you own a property 50/50 with your spouse, each of you reports half the gain. Each spouse uses their own annual exempt amount (£3,000 each) and their own CGT rate.
If the property is held as tenants in common in unequal shares, each owner reports their actual share.
Do You Need to Report If There Is No Gain?
If you make a loss on the property, you do not need to report it within 30 days. You can claim the loss on your self assessment return and offset it against other gains.
If the gain is fully covered by the annual exempt amount (£3,000), you still need to report it if the disposal proceeds exceed £50,000. Below that threshold, HMRC does not require a report. Check the exact rules for your situation.
How Does This Affect Non-UK Residents?
Non-UK residents already had to report UK property disposals within 30 days. The new rules do not change that. But the 30-day window now applies to all property, not just residential.
If you are a non-UK resident selling a UK commercial property or land, you must report within 30 days from April 2026.
Practical Steps to Prepare Now
If you plan to sell a property after 6 April 2026, here is what to do now:
- Gather your records. Find the purchase documents, legal fees invoices, SDLT returns, and improvement receipts. Without these, you cannot calculate the gain accurately.
- Check your HMRC online account. Make sure you can log in. If you have never used the Capital Gains Tax on UK Property service, register now.
- Talk to your accountant. Discuss the planned sale and the estimated gain. We can help you calculate the tax before you exchange contracts.
- Factor the tax into your cash flow. You will need to pay the CGT within 30 days of completion. Do not spend all the sale proceeds before settling the tax bill.
- Consider timing. If you are selling a commercial property in early April 2026, the 30-day window falls in the new tax year. That affects which year's annual exempt amount and tax rates apply.
What If You Have Already Reported Under the Old Rules?
If you sold a residential property before 6 April 2026, the old 60-day rule applies. You do not need to re-report under the new rules. But if you sold a commercial property before 6 April 2026, the old self assessment deadline applies. You report that gain on your 2025/26 tax return, due 31 January 2027.
Penalties and Interest: The Real Cost of Missing the Deadline
Let us be direct about this. Missing the 30-day deadline is expensive. Here is a real scenario:
You sell a commercial unit in Leeds city centre for £500,000. Your gain is £200,000. You are a higher rate taxpayer, so CGT at 24% on the gain after the £3,000 allowance is £47,280. You miss the 30-day deadline by three months.
Penalty: £100. Interest on £47,280 at 6.75% (current rate) for three months: approximately £798. Total extra cost: £898. And you still have to pay the £47,280.
If you miss by 12 months, the penalty is £300 or 5% of £47,280 (whichever is higher, so 5% = £2,364). Plus interest on the full amount for 12 months: approximately £3,191. Total extra cost: £5,555.
That is real money. The hmrc cgt reporting requirements 2026 are not optional.
How Holloway Davies Can Help
Our ICAEW qualified team handles property sale reporting for clients across the UK. We calculate the gain, apply the correct reliefs, submit the report through the HMRC online service, and advise on payment timing.
If you are selling a property after April 2026, contact us before you exchange contracts. We can model the tax position and make sure you have the cash ready for the 30-day deadline.
For more on how Capital Gains Tax interacts with business structures, read our exit and capital gains guidance. If you are considering selling a property through your limited company, our limited company tax articles cover the Corporation Tax treatment.
We also have a CGT calculator on our site that can give you a quick estimate of the tax due on a property sale. Use it as a starting point, but get professional advice for the final figures.
If you are unsure whether your property qualifies for Private Residence Relief or Business Asset Disposal Relief, our services page explains how we review property portfolios and optimise the tax position before a sale.
Final Thoughts
The 30-day CGT reporting rule from April 2026 is a significant tightening of the compliance window. It affects every property seller, not just residential landlords. Commercial property owners and land sellers face the biggest change, moving from an annual deadline to a 30-day one.
Prepare now. Gather your records. Know your gain. Pay on time.
If your property sale completes after 5 April 2026, you have 30 days. Not a day more.