How to Pay CGT on Property | UK Landlord Guide

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Landlords and property investors who have sold a UK residential property must be aware of a strict deadline: HM Revenue and Customs (HMRC) requires Capital Gains Tax on the sale of a UK residential property to be reported and paid within 60 days of completion. Missing this deadline can result in penalties and interest before the final tax position has even been established. This is why the deadline should be understood before considering the subsequent reporting steps.

This guide sets out, in line with HMRC’s published guidance, exactly how to report and pay Capital Gains Tax on UK property: what information is required, the steps involved in the online process, and the obligations that continue after submission.

Who Needs to Report Capital Gains Tax on UK Property

If you are a UK resident who sells or otherwise disposes of a UK residential property at a chargeable gain, you are normally required to report the disposal to HMRC within 60 days of completion, in addition to any obligations under Self Assessment. This requirement applies regardless of whether the individual already submits a Self Assessment tax return each year. The 60-day property return is separate, and HMRC expects compliance irrespective of an individual’s usual filing pattern. The main exceptions are set out below.

There are, however, certain circumstances in which a 60-day report is not required:

The gain falls entirely within the individual’s tax-free allowance, as set out in HMRC’s Capital Gains Tax allowances guidance.
The disposal is fully exempt or relieved, for example, where Private Residence Relief covers the entire gain because the property was the individual’s only or main residence throughout the period of ownership.
The disposal results in a loss rather than a gain.

Where none of these circumstances applies, and Capital Gains Tax is due, a report must be made. Non-UK residents are subject to a similar 60-day requirement, with one important distinction: every disposal of UK property or land must be reported within the deadline, even where no tax is owed. See HMRC’s guidance for non-UK residents disposing of UK property or land for further details. If you are unsure whether a disposal is reportable, the next section explains what to gather before starting.

For landlords who are uncertain whether a disposal gives rise to a reportable gain, our guide on how to work out your Capital Gains Tax sets out the calculation in detail before any return is submitted.

The 60-Day Deadline Explained.

This is the part of the process that causes the most difficulty in practice and deserves particular attention, because the deadline is based on completion rather than exchange.
Exchange or Completion date?
When selling a property the completion is the date on which an individual ceases to be the owner of the property, typically when the proceeds of sale are received and the keys are handed over. The exchange of contracts is an earlier, separate event and does not trigger the 60-day period.

The 60-day report should not be delayed until the Self Assessment deadline.Individuals accustomed to reporting capital gains on their annual Self Assessment return by 31 January should be aware that property disposals are treated differently. The 60-day report is required in addition to, and much earlier than, anything later included in a Self Assessment return. Waiting until the usual Self Assessment deadline will mean missing the 60-day deadline.

Earlier disposals were subject to a shorter deadline. Where the completion date fell between 6 April 2020 and 26 October 2021, the applicable deadline was 30 days. For completions on or after 27 October 2021, the deadline is 60 days. Anyone dealing with an older disposal should confirm which deadline applied at the relevant time. Once the deadline is clear, the process section below explains how to report in practice.
Where a return is not made, or tax is not paid within the required period, HMRC may charge interest on the tax due, together with a separate penalty for late filing.

Approaching the 60-day deadline and need assistance? Our team can help ensure an accurate report is submitted on time, using reasonable estimates where final figures are not yet available, with amendments made once the position is confirmed. Visit our Capital Gains Tax for UK Residents page to find out how we can help.
Further information on the rules, exceptions, and consequences of late filing is available in HMRC’s guidance on reporting and paying Capital Gains Tax on UK property, and in our own guide to penalties for late filing or payment. If you are ready to begin, the next section sets out the information to gather first.

Key Information to Gather Before Starting

Before you start your return, individuals are advised to gather the following information in order to complete the process efficiently: start with the property details, then collect the dates, values, costs, reliefs, and income estimate.

Key dates, including the date the property was acquired, the date contracts were exchanged on the sale, and the completion date, since this final date determines the start of the 60-day period.
Purchase and sale values are the amounts paid on acquisition and received, or the market value in the case of gifts or transfers to connected persons, on disposal.
Costs associated with buying, selling, and improving the property, including Stamp Duty Land Tax paid on purchase, solicitors’ fees, estate agents’ fees, and the cost of any capital improvements. Routine repairs and maintenance are not included.
Details of any reliefs, allowances, or exemptions to be claimed, such as Private Residence Relief for any period during which the property was the individual’s home, or losses arising from other disposals in the same tax year.
An estimate of income for the relevant tax year, since the payment due is an estimate of Capital Gains Tax, and HMRC requires an indication of income level to apply the correct rate.

Stamp Duty Land Tax paid on the original purchase is a deductible cost against the gain. For further guidance on how this tax applies to landlords, please refer to our articles on Stamp Duty Land Tax and our Buy-to-Let Stamp Duty Calculator.

Step-by-Step Reporting Process

The following sets out the process for submitting a return through HMRC’s online Capital Gains Tax on UK property service, showing what individuals need to do at each step. The steps below follow the order in which the online service is normally completed.

Sign In or Create a Government Gateway Account
Make sure you have your sign-in details to hand to use the online service. Those who do not already have Government Gateway sign-in details can create them when accessing the service for the first time.
The Capital Gains Tax on UK Property Service
HMRC have a dedicated digital service, separate from the main Self Assessment account, used specifically to report and pay Capital Gains Tax on property disposals. The service can be accessed directly via HMRC at www.tax.service.gov.uk/capital-gains-tax-uk-property/start.
Enter Disposal Details
The individual will be asked to provide the property address, the date the property was acquired, the date of exchange of contracts, and the completion date, together with the property’s value at acquisition and at disposal.
Enter Costs and Reliefs
Claim your allowable costs which should include purchase costs, selling costs, and the cost of improvements, together with details of any reliefs, allowances, or exemptions to be claimed against the gain.
Review the Estimated Tax Due
The digital service will calculate an estimate of the gain and the tax due based on the information provided and the individual’s estimated income. It is worth remembering that if you do not have the final figures before the 60 day deadline, HMRC’s guidance confirms that reasonable estimates may be used to avoid missing the deadline, with the figures corrected later.
Submit the Return
Once the figures have been confirmed as accurate or represent a reasonable estimate, the return should be submitted. A digital or printed copy should be retained for the individual’s own records, as this will be required for any future amendment and for reconciliation against the Self Assessment return. After submission, payment can be made using the methods set out below.
Pay Using the Property Account or HMRC’s Payment Service
Payment may be made at the time of submission or afterwards using the provided payment reference. Where the online service cannot be used, and a paper return is submitted instead, HMRC will issue a 14-character payment reference beginning with the letter “X”, which must be used to make payment.
Individuals who are also registered for Self Assessment should bear in mind that the property disposal must still be included in the Self Assessment return for the relevant tax year. The 60-day report does not remove this requirement. This is something that is often overlooked, as quite naturally you would think you have already reported the gain

How to Pay Capital Gains Tax on UK Property

Once a return has been submitted, payment can generally be made using one of the following methods, as confirmed by HMRC’s guidance on ways to pay Capital Gains Tax: the account service, online bank approval, online or telephone banking, debit or credit card, or cheque.

Through the Capital Gains Tax on UK property accounts, where reporting and payment can be completed together.
By approving a payment through an online bank account
By online or telephone banking.
By debit or credit card.
By cheque.

Whichever method is used, the correct payment reference must be quoted to ensure that HMRC allocates the payment correctly. Where a return has been submitted by post, HMRC will issue the 14-character reference beginning with “X” after the return has been processed.

It is important to understand that the amount paid at this stage is a payment on account, based on an estimate using the information available at the time. The final Capital Gains Tax position is reconciled when the individual completes their Self Assessment return for that tax year, which takes into account any factors not reflected in the original estimate, such as losses realised later in the tax year. Where the estimated payment was too low, the balance is collected through Self Assessment. Where it was too high, a refund should follow. The final section explains how to amend a return if figures later change.

Amending a Return and Record Keeping

It is not unusual for figures to change after a return has been submitted, whether because estimates were used in place of final costs or because an error has subsequently been identified. Individuals may use their own Capital Gains Tax on UK property accounts to view and amend previous returns. If an amendment is needed, the account should be used to update the return and keep the record aligned.
There are, however, limits on when an amendment can be made. A return generally cannot be amended:

For the 2023 to 2024 tax year or earlier.
Where a Self Assessment return covering the same tax year as the property return has already been submitted, any corrections must instead be made through the Self Assessment return.

Where an individual is reporting and subsequently amending on behalf of another person, this must be done by completing an online form and sending it to HMRC by post, rather than through the individual’s own online account.
Given the restrictions on amending a return, it is advisable to ensure the figures are correct at the outset wherever possible. The following records should be retained:

Completion statements relating to both the purchase and the sale of the property.
Invoices and receipts for legal fees, estate agents’ fees, and Stamp Duty Land Tax paid.
Evidence of the cost of any capital improvements, such as contractor invoices and payment records.
Documentation supporting any reliefs claimed, such as evidence of periods of occupation for the purposes of Private Residence Relief.

Maintaining this evidence not only supports the 60-day report itself, but is also what HMRC would expect to see should the Self Assessment return be queried at a later date.

Would you like a second opinion before you submit your return? Our review service checks your calculations, reliefs, and allowable costs before filing, reducing the risk of relying on a rushed estimate against a tight deadline. Find out more about our Landlord Tax Return Service or get in touch with our team.

For a more detailed understanding of how the tax itself is calculated, including rates, Private Residence Relief, and the treatment of gains on rental property, please refer to our guides on Capital Gains Tax for UK Residents and types of ownership. Landlords based outside the UK should also refer to our guide on Capital Gains Tax for non-resident landlords.

Selling one property while purchasing another? Do not overlook the costs on the purchase side. As well as the purchase price, there is likely to be additional costs such as SDLT. Our Buy-to-Let Stamp Duty Calculator provides a quick estimate of the Stamp Duty Land Tax payable on your next acquisition.

Frequently Asked Questions

When do you have to report Capital Gains Tax on UK property?
A report must be made within 60 days of the sale’s completion date if a chargeable gain has arisen and Capital Gains Tax is due. This obligation is separate from, and earlier than, the annual Self Assessment deadline.

Is the deadline 60 days from exchange or completion?
The deadline runs from the date of completion. The exchange of contracts is the earlier date on which the sale is agreed. The time between an exchange and completion can be as short as the same day to several weeks, but for CGT purposes, it is the completion date that determines the start of the 60‑day period.

What costs can be included on a property Capital Gains Tax return?
Allowable costs include those incurred in buying the property, such as Stamp Duty Land Tax, the costs of selling the property, such as legal and estate agents’ fees, and the cost of any capital improvements made during the period of ownership. Routine repairs and maintenance costs are not allowable.

Do you still need to include the sale on your Self Assessment return?
Yes, where the individual is registered for Self Assessment. The 60‑day report is required in addition to the disposal being included on the Self Assessment return for the relevant tax year. The payment made under the 60‑day report is treated as a payment on account of the final Self Assessment liability.

Can you amend a Capital Gains Tax property return after submission?
Yes, an individual may amend their own return using their Capital Gains Tax on UK property account. However, returns relating to the 2023 to 2024 tax year or earlier generally cannot be amended in this way, nor can a return be amended once a Self Assessment return covering the same tax year has been submitted, in which case any correction must be made through the Self Assessment return instead.

How to Report and Pay Capital Gains Tax on UK Property