Help! I sold a UK rental property last month and just realised I need to report the CGT within 60 days. What happens if I miss the deadline? And can I use an accountant to do the reporting and calculation for me after the sale?
Quick Answer
Missing the 60-day CGT reporting deadline for a UK property sale can lead to penalties from HMRC. An accountant can still help you report the sale and calculate the tax due after the sale date.
## What is the 60-day Capital Gains Tax reporting deadline for property sales?
When a UK residential property is sold resulting in a Capital Gain, the gain must be reported to HMRC and any tax due paid within 60 days of the completion date. This requirement applies to individual landlords selling a property that was not their main home, such as a buy-to-let or second home. For basic rate taxpayers, the CGT rate is 18%, and for higher or additional rate taxpayers, it is 24%, after the annual exempt amount of £3,000.
### What happens if I miss the 60-day deadline?
Missing the 60-day reporting deadline for a property sale can result in penalties from HMRC. The initial penalty for being late is £100, even if no tax is ultimately due. If the report remains unfiled after six months, further penalties of £300 or 5% of the tax due (whichever is greater) can be applied. After 12 months, another £300 or 5% penalty can be levied. HMRC also charges interest on any overdue tax from the original payment due date.
### Can an accountant report and calculate CGT for me after the sale?
Yes, an accountant can certainly report and calculate the Capital Gains Tax (CGT) liability for your property sale even after the transaction has completed. While the deadline is 60 days from completion, accountants regularly assist clients with late submissions and can navigate the process for you. They will need access to all relevant financial documents, including purchase and sale statements, solicitor fees, and any records of capital improvements made to the property.
### What information does an accountant need to calculate CGT?
To calculate your CGT, an accountant will require details of the original purchase price, stamp duty paid (which would have included a 5% additional dwelling surcharge if applicable from April 2025), solicitor fees for both purchase and sale, and any costs of capital improvements. They will also need to know your income tax bracket for the tax year of the sale to apply the correct CGT rate (18% for basic rate, 24% for higher/additional rate taxpayers) and determine if you have any of the £3,000 annual exempt amount remaining. For example, a property bought for £200,000 and sold for £300,000 with £10,000 in allowable costs would generate a £90,000 gain before the £3,000 allowance, subject to CGT at your marginal rate.
### Does the type of property sold affect the CGT reporting requirement?
The 60-day reporting requirement specifically applies to disposals of UK residential property where CGT is due. This includes buy-to-let properties, second homes, and inherited residential properties that are sold. Properties that have always been your main home and therefore qualify for Private Residence Relief are typically exempt from CGT and thus do not require a report within this timeframe. Holiday lets may also incur CGT on sale.
Steven's Take
The 60-day CGT reporting deadline is a critical, often overlooked, aspect of property sales that catches many investors out. The penalties can quickly accumulate, even for relatively small tax amounts. My advice is always to engage with a property tax specialist before exchanging contracts, not after completion. This proactive approach allows for proper planning, ensures all allowable expenses are captured, and avoids stress and penalties post-sale. Don't underestimate HMRC's enforcement; they are stringent with this deadline.
What You Can Do Next
Contact a property tax specialist accountant immediately (search 'property tax accountant' on ICAEW.com or ACCA.org.uk) to discuss your late filing.
Gather all relevant documents including purchase statements, sale statements, solicitor invoices for both transactions, and any records of capital expenditure on the property.
Authorise your accountant to submit the necessary 'Capital Gains Tax on UK property' return to HMRC on your behalf, ensuring all calculations are accurate and penalties/interest are correctly managed.
Review your overall tax position with your accountant to understand how the property sale affects your current tax year's income tax liability and to plan for future investments.
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