Selling a buy-to-let property is often a significant financial milestone. You might be releasing capital for retirement, rebalancing a portfolio, or stepping back from the responsibilities of being a landlord.
But what many landlords don’t realise is that the tax clock starts ticking the moment the sale completes. And if capital gains tax (CGT) is due, HMRC expects to hear about it, and to be paid, within 60 days. It doesn’t wait for your next Self-Assessment return.
Here we explain who needs to report under the 60-day rules, how the position differs for UK residents and non-UK residents, what happens if you miss the deadline, and how the rules actually work in practice.
What are the 60-day CGT reporting rules?
Since 6 April 2020, gains on UK residential property have been reported through HMRC’s online “Capital Gains Tax on UK property account”, separately from Self-Assessment. Returns must now be filed, and any tax paid, within 60 days of the completion date.
When do UK-resident landlords need to report?
If you’re a UK resident and sell a UK residential property, these 60-day reporting rules apply if CGT is due. On some sales no tax will be due, for example if the gain is fully covered by:
- Private residence relief
- Your annual exempt amount
- Capital losses already realised
And if no tax is due, you don’t need to report – although you can choose to.
Where a property is jointly owned, each owner reports their own share of the gain. If one partner is a basic-rate taxpayer and the other pays higher-rate tax, your positions will differ.
It’s important to note here though that filing the property return does not remove the need for a Self-Assessment return. If you’re already registered for Self-Assessment, as most landlords are, you must also include the sale on your annual return. The 60-day figure is effectively a payment on account, based on your best estimate of your income for the year. The final liability is settled through Self-Assessment.
When do non-resident landlords need to report?
The rules for non-UK residents are wider and catch many people out. If you are not UK resident, you must report every disposal of UK property or land within 60 days of completion. This applies even if there is no tax to pay, and even if you made a loss. The requirement covers:
- Residential property
- Commercial property
- Mixed-use property
- “Indirect” disposals, such as selling shares in an entity that gets at least 75% of its value from UK land
Common pitfalls to avoid
Confusing completion and exchange. For most sales, the tax year in which the gain falls is set by the date contracts are exchanged. The 60-day deadline, however, runs from completion. Where exchange and completion are weeks or months apart, this can cause confusion.
Treating repair costs as deductible. Only capital improvements, such as an extension, reduce the gain. Day-to-day repairs and redecoration are set against rental income instead.
What happens if you don’t report?
Missing the deadline is not a technicality. HMRC can charge late filing penalties, which increase the longer a return stays outstanding, and late payment interest runs on any unpaid tax from the 60-day deadline.
If you file your Self-Assessment return without the property return having been submitted, HMRC will still raise a CGT charge, and penalties and interest may apply on top.
Cash flow matters too. The tax is due within weeks of completion, not on 31 January after the end of the tax year. So, if you don’t set aside part of the sale proceeds, you may end up having to pay the bill from other funds.
Example: Landlord selling a buy-to-let
Sarah is a UK resident and a higher-rate taxpayer.
In 2015 she bought a flat to let, which she has never lived in, so private residence relief is not available. The figures are:
| Exchange of contracts | 20 August 2026 |
| Completion | 15 September 2026 |
| Sale price | £300,000 |
| Selling costs (agent and legal fees) | £(5,000) |
| Purchase price | £(180,000) |
| Purchase costs (legal fees and Stamp Duty Land Tax) | £(6,000) |
| Extension (capital improvement) | £(15,000) |
| Chargeable Gain | £94,000 |
Sarah has a chargeable gain of £94,000, so has to report within 60 days of completion.
Sarah must therefore file her property return and pay the tax by 14 November 2026. She must also include the sale on her 2026/27 Self-Assessment return, which is due by 31 January 2028.
If Sarah were non-resident, she would still have to file by 14 November 2026, even if the sale had made a loss. Different calculation rules can also apply to non-residents.
In summary
The 60-day CGT rules turn landlord property sales into a short, fixed deadline that comes with its own reporting process. UK-resident landlords must report and pay within 60 days of completion whenever CGT is due. Non-resident landlords must report every UK property disposal, whether or not tax is due. In both cases, the sale still needs to go on the Self-Assessment return. Missing the deadline leads to penalties and interest that are easy to avoid with some advance planning.
Thinking of selling? Talk to us before you complete
The best time to look at the CGT on a property sale is before the sale goes through. That leaves time to check which costs you can deduct, which available losses and allowances you can use, plan the timing of exchange, and set aside the right amount for tax.
Our Private Client Tax team can help by working out your liability, filing your 60-day return and fitting it into your Self-Assessment. To find out more contact one of the team by calling 0330 058 6559 or email hello@scruttonbland.co.uk
