If you sell a UK residential property in 2026/27 and make a capital gain, you have 60 days from the completion date to report the gain to HMRC and pay the Capital Gains Tax due. Not via your annual tax return at 31 January. Not 30 days. Sixty days, using HMRC's dedicated online service for UK property disposals.
The critical distinction for 2026/27 is this: the 60-day reporting window applies to residential property only. If you sell commercial property or bare land, you report the gain through your annual Self Assessment return as normal. There is no separate in-year reporting requirement for non-residential disposals.
This guide sets out the rules as they stand for 2026/27, covering who must report, how the online service works, the penalty structure for late returns, current CGT rates and a step-by-step worked example of a buy-to-let sale.
The 60-Day Residential Property Rule
The 60-day CGT reporting window was introduced by Finance Act 2020 and has applied in its current form since 27 October 2021. (An earlier version ran from 6 April 2020 with a 30-day window; that was extended to 60 days following widespread feedback that 30 days was insufficient.) The 60-day deadline is the settled, current position for 2026/27.
The rule is triggered when all three of the following apply:
- A UK resident individual (or trustee or personal representative) disposes of a UK residential property
- A chargeable gain arises after applying available reliefs
- The disposal is not fully covered by Private Residence Relief
The 60-day clock starts on the completion date, not the date of exchange of contracts.
Who Is Affected
The 60-day reporting obligation applies to individuals, trustees and personal representatives selling UK residential property with a chargeable gain. The main categories are:
- Landlords selling a buy-to-let or rental property
- Second home owners selling a holiday property or additional residence
- Anyone who has inherited a residential property and subsequently sells it
- Individuals selling a former main home where full Private Residence Relief is not available (for example, because part of the property was let out, or there was a period of non-qualifying absence)
- Trustees and personal representatives selling residential property held in a trust or estate
Companies are not subject to the 60-day rule. Companies pay Corporation Tax on chargeable gains and report through their Corporation Tax return (CT600).
Commercial Property and Land: Self Assessment Applies
The HMRC online 60-day service covers UK residential property only. If you dispose of commercial property (offices, retail units, warehouses, industrial premises) or bare land, there is no 60-day in-year reporting requirement for UK residents. Those gains are reported on your annual Self Assessment tax return, due by 31 January after the end of the tax year.
For a commercial property or land sold during the 2026/27 tax year (6 April 2026 to 5 April 2027), the gain is included on the 2026/27 Self Assessment return, with any tax due by 31 January 2028.
This is the position for UK-resident individuals. Non-residents face a different rule, set out below.
Private Residence Relief: When No Report Is Required
If the property was your only or main home throughout the entire period of ownership, Private Residence Relief will typically cover the full gain and no CGT is due. In most circumstances, there is also no obligation to file a 60-day return when the full gain is covered by the relief.
However, if the relief only partially covers the gain (for example, because you let the property out for part of the ownership period, used part of it for business, or there were periods of absence that do not attract automatic relief), a return is required within 60 days for the chargeable portion that remains.
How to Report: The HMRC Online Service
Reporting is done through HMRC's "Report and pay Capital Gains Tax on UK property" online service, accessed via your Government Gateway account. If you have never used the service, allow time to register before your sale completes.
The process works as follows:
- Note the completion date. This is the trigger for the 60-day clock. It appears in your completion statement from your solicitor.
- Calculate the gain. You need the sale price, the original purchase price, allowable acquisition costs (legal fees, Stamp Duty Land Tax, survey fees), allowable disposal costs (estate agent fees, legal fees on sale), enhancement expenditure (capital improvements that added value or extended the property's useful life, not routine repairs or maintenance), and any reliefs to be claimed.
- Log in and submit. Enter the property details, dates, cost figures, reliefs claimed and your estimated gain. The service calculates the provisional tax due.
- Pay within 60 days. Payment can be made by bank transfer (Faster Payments, BACS or CHAPS) or debit card. Personal credit cards are not accepted.
- Confirm on Self Assessment. You must also report the disposal on your annual Self Assessment return for the tax year of completion. If the final figures differ from the 60-day return (for example because you have additional reliefs or your income for the year affects the rate), any overpayment or underpayment is adjusted through Self Assessment.
Penalties for Missing the Deadline
HMRC applies an automatic penalty structure for 60-day CGT returns filed late:
- Immediate: £100 fixed penalty for a return submitted after the 60-day deadline
- 6 months late: the higher of £300 or 5% of the tax due
- 12 months late: a further penalty applies at the higher of £300 or 5% of the tax due
In addition to penalties, interest accrues on unpaid tax from the day after the 60-day deadline. The rate is HMRC's late payment interest rate, currently set at the Bank of England base rate plus 2.5 percentage points.
HMRC does not generally accept unawareness of the rule as a reasonable excuse for late filing. If you have a genuine excuse (such as a serious illness during the filing period), that can be raised on appeal, but the bar is high.
Worked Example: Selling a Buy-to-Let in Manchester
The following example illustrates a typical buy-to-let disposal for a higher-rate taxpayer in 2026/27.
You purchased a two-bedroom flat in Manchester in 2018 for £185,000. You have let it out throughout your ownership. In May 2026 you sell it for £310,000. You are a higher-rate taxpayer (your income already exceeds the basic-rate band).
Allowable costs:
| Item | Amount |
|---|---|
| Purchase price | £185,000 |
| Legal fees on purchase | £3,200 |
| SDLT on purchase | £2,500 |
| New kitchen (capital improvement, 2022) | £12,000 |
| New bathroom (capital improvement, 2023) | £8,000 |
| Estate agent fees on sale | £1,800 |
| Legal fees on sale | £1,500 |
| Total allowable costs | £214,000 |
Gain: £310,000 minus £214,000 = £96,000
No Private Residence Relief applies (you never lived in the property). Letting Relief does not apply in most cases following the April 2020 changes.
Annual exempt amount 2026/27: £3,000
Taxable gain: £96,000 minus £3,000 = £93,000
CGT at 24% (all gains fall above the basic-rate band): £93,000 x 24% = £22,320
Completion is on 15 May 2026. Counting 60 days forward, the reporting and payment deadline is 14 July 2026. You must submit the return and pay £22,320 by that date.
If you miss the deadline, HMRC issues a £100 penalty immediately. If the return remains outstanding six months later (14 January 2027), the penalty rises to the higher of £300 or 5% of £22,320, which is £1,116. Interest runs on the unpaid tax from 14 July 2026 at the applicable HMRC rate.
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| A | B | C | D | E | F | G | H | I | J | K | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Your figures (edit the blue cells) | Side by side | |||||||||
| 2 | Sale proceeds | £600,000 | BADR rate: before 6 Apr 2026 | 14% | |||||||
| 3 | Original cost | £100,000 | BADR rate: on/after 6 Apr 2026 | 18% | |||||||
| 4 | Meets BADR conditions | Yes | Total CGT (before) | £70,000 | |||||||
| 5 | Total CGT (on/after) | £90,000 | |||||||||
| 6 | Net proceeds (before) | £530,000 | |||||||||
| 7 | Net proceeds (on/after) | £510,000 | |||||||||
| 8 | £20,000 more CGT if you complete on or after 6 April 2026 | ||||||||||
| 9 | |||||||||||
| 10 | |||||||||||
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CGT Rates for 2026/27
Since 30 October 2024, the CGT rates for individuals on all chargeable assets (including residential property) are:
- 18% on gains that fall within the basic-rate income tax band
- 24% on gains above the basic-rate band
The previous 28% higher rate for residential property was abolished on 30 October 2024. The same 18%/24% structure now applies to residential property, shares and all other chargeable assets.
To determine which rate applies, add your taxable gain to your taxable income for the year. The portion of the gain that fills the remaining basic-rate band (up to £50,270 for most individuals in 2026/27) is taxed at 18%. Any amount above the basic-rate threshold is taxed at 24%.
The annual exempt amount is £3,000 for both 2025/26 and 2026/27.
Non-UK Residents: A Broader Obligation
Non-UK residents face a wider reporting obligation than UK residents. They must report all disposals of UK land and property (residential and non-residential) to HMRC within 60 days of completion, even when no tax is ultimately due.
This means that a non-UK resident selling a UK commercial property or a plot of land must file a 60-day return, even though a UK resident selling the same asset would use the annual Self Assessment route instead.
The non-resident CGT regime has applied to UK residential property since April 2015 and was extended to UK non-residential property from April 2019. The 60-day deadline applies throughout.
Joint Owners
Where a property is owned jointly, each owner reports and pays their own share of the gain separately, using their own HMRC online account. Each owner applies their own annual exempt amount (£3,000 each) and their own income figures to determine the rate that applies to their share.
For a property held in equal shares (50/50), each owner reports half the gain. For a tenants-in-common arrangement with unequal shares, each owner reports their actual percentage.
Does This Apply to Companies?
No. Companies pay Corporation Tax on chargeable gains, not Capital Gains Tax. A gain on a property held by a limited company is included in the company's Corporation Tax return (CT600) for the relevant accounting period. The 60-day reporting service and CGT rates do not apply to companies.
If you are considering whether to sell a property personally or through a company, the tax treatment differs significantly. We can model both scenarios before you commit to a course of action.
Practical Steps to Take Before Selling
Sixty days passes quickly alongside the practical demands of a property transaction. Preparing the following before exchange of contracts reduces the risk of missing the deadline:
- Locate your purchase documents. Find the original completion statement, legal fees invoice, SDLT return and any survey invoices. Without these, you cannot accurately calculate the cost base.
- List your improvement expenditure. Gather invoices for capital work carried out during ownership. Routine maintenance (redecorating, replacing like-for-like fittings) does not count. Structural work, extensions and improvements that add lasting value do.
- Check your Government Gateway access. If you have never used the CGT on UK property service, register before you exchange contracts. Access issues take time to resolve.
- Model the tax before exchange. Knowing your estimated CGT liability before completion means you can plan your cash flow. Do not assume you can spend all the sale proceeds before settling the tax bill.
- Speak to an accountant before completion, not after. Once the 60-day clock is running, there is limited time to gather advice. The best position is to have the calculation done and a payment plan in place by the time your solicitor sends the completion statement.
How Holloway Davies Can Help
Our team works with property sellers across the UK on CGT calculations and 60-day reporting. We review the full cost base, apply the correct reliefs, submit the return through the HMRC online service and advise on payment timing.
If you are selling a residential property, contact us before you exchange contracts. We can give you an accurate estimate of the CGT due so you can plan your cash flow and avoid penalties. For commercial property disposals, we handle the Self Assessment reporting and can advise on available reliefs before you complete the sale.
For more detail on Capital Gains Tax and how it interacts with business structures, read our exit and capital gains guidance. If you are considering selling through a limited company, our limited company tax articles cover the Corporation Tax treatment of property gains in detail.
We also have a CGT calculator on our site that gives you a quick estimate of the tax due. Use it as a starting point, then get professional advice on the full position before you complete.