United Kingdom
The 60-day CGT deadline and what happens if you miss it
Under the UK 60-day rule for 2026/27, you must report and pay Capital Gains Tax on residential property within 60 days of completion if tax is due. On a £200,000 purchase sold for £350,000, a higher-rate taxpayer owes £35,280. Missing the deadline triggers an immediate £100 penalty, daily £10 penalties after 3 months (up to £900), and 5% surcharges on unpaid tax at 6 and 12 months.
| Reporting & payment deadline | 60 days from completion |
| Initial late filing penalty | £100 (incurred at day 1 late) |
| Daily penalty (after 3 months) | £10 per day (up to 90 days / max £900) |
| Tax-geared penalties | 5% of unpaid tax at 6 months + 5% at 12 months |
| Annual exempt amount | £3,000 per person |
| CGT on £350,000 baseline sale | £35,280 |
| Total late penalties at 12 months | £4,528 |
What is the UK 60-day capital gains tax rule?
If you dispose of UK residential property that produces a Capital Gains Tax (CGT) liability, HMRC requires you to report the disposal and pay the tax owed within 60 calendar days of completion.
The clock starts on the legal completion date, not when contracts are exchanged. Both reporting the sale through HMRC's online Capital Gains Tax on UK property service and paying the tax bill must occur within the 60-day window.
How much is capital gains tax on a second home?
Consider a higher-rate taxpayer (taxable income of £60,000) who sells an additional residential property for £350,000 having bought it for £200,000. With 60 months of ownership and no main residence relief, the full gain is chargeable.
| Step | Amount | Explanation |
|---|---|---|
| Sale proceeds | £350,000 | Gross completion price |
| Less purchase price | −£200,000 | Original acquisition base cost |
| Chargeable gain | £150,000 | No Private Residence Relief on second home |
| Less annual exempt amount | −£3,000 | Statutory tax-free allowance for 2026/27 |
| Taxable gain | £147,000 | Portion subject to tax |
| Capital Gains Tax due (24%) | £35,280 | Higher residential rate |
HMRC capital gains tax calculation on a £350,000 residential disposal in 2026/27.
Because the seller already earns £60,000, the entire taxable gain of £147,000 is taxed at the higher residential rate of 24%, producing a tax bill of £35,280.
What happens if you miss the 60-day deadline?
Missing the 60-day deadline results in statutory late filing penalties under Schedule 55 to Finance Act 2009. The penalties escalate in stages:
| Time past deadline | Penalty rule | Penalty amount | Cumulative |
|---|---|---|---|
| 1 day late | Initial fixed penalty | £100 | £100 |
| 3 months late | £10 per day for up to 90 days | £900 | £1,000 |
| 6 months late | 5% of unpaid tax (or £300 if greater) | £1,764 | £2,764 |
| 12 months late | Additional 5% of unpaid tax (or £300 if greater) | £1,764 | £4,528 |
Statutory late filing penalties on a £35,280 tax liability at each milestone.
For our baseline sale with £35,280 tax due, being over a year late adds £4,528 in statutory filing penalties alone, on top of HMRC statutory interest on unpaid tax.
Do you pay capital gains tax on selling a house?
You are required to submit a 60-day return whenever you sell a UK residential property and have tax to pay:
- Second homes and holiday lets that are not your primary home.
- Buy-to-let investments where sale proceeds exceed acquisition and allowable costs.
- Former main homes where Private Residence Relief covers only part of the gain.
- Inherited properties where the sale price exceeds the probate valuation.
If no tax is due because the property was your only main residence throughout, or your total net gain is under the £3,000 annual exemption, UK residents do not need to file a 60-day return.
How do you submit and pay your 60-day CGT return?
To file and pay on time:
- Sign into Government Gateway and access your personal tax account at gov.uk.
- Set up a CGT on UK property account to receive your payment reference number.
- Enter disposal details: completion dates, purchase costs, improvement receipts, and an estimate of your annual income.
- Pay HMRC using the 14-character payment reference via online banking.
What do people get wrong about the 60-day rule?
- Assuming the Self Assessment deadline applies. The 60-day window is separate and much shorter.
- Starting the clock from exchange rather than completion. The deadline runs from legal completion only.
- Not filing because no tax is due. Non-residents must always file. UK residents only skip it when no tax arises.
- Forgetting interest runs from day 61. Even if you eventually pay, HMRC charges interest from the date it was due.
- Not estimating income accurately. A low estimate can mean underpayment, though HMRC accepts a reasonable estimate without penalty.
Work out your capital gains tax with the UK calculator
Common questions
Does the 60-day clock start on exchange or completion?
The 60-day reporting and payment countdown runs strictly from the legal completion date, not exchange. You have 60 calendar days from completion to file and pay.
What if I do not know my exact income when filing within 60 days?
HMRC asks for a reasonable estimate of your taxable income for the year. If your actual income turns out different, you reconcile any difference on your annual Self Assessment return without penalty.
Do joint owners submit one return or two?
Each joint owner must file their own separate 60-day return. Each owner declares their share of the proceeds and uses their own £3,000 annual exemption.
Do I need to file a 60-day return if I make a loss?
UK tax residents do not need to submit a 60-day return if the disposal results in a loss or if no tax is due. However, report the loss on your annual Self Assessment to carry it forward against future gains.
Can late filing penalties be appealed?
You can appeal late filing penalties within 30 days if you have a reasonable excuse, such as severe illness or bereavement. However, statutory interest on unpaid tax cannot be waived under UK law.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HM Revenue & Customs (gov.uk) or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
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