Capital Gains Tax returns on UK property: 60 days to report and pay
UK tax residents (including individuals, partnerships, trusts and estates) selling UK residential property may need to report the sale and pay the associated Capital Gains Tax (CGT) within 60 days of completion of the sale. A CGT return is only required if tax is due because of the sale.
For non-UK residents, the rules are broader: all disposals of UK land and property must be reported within 60 days, even if no CGT is payable.
Missing the 60-day deadline can lead to significant penalties:
- £100 late filing penalty per return, charged immediately following the deadline
- 5% of unpaid tax if over six months late
- an additional 5% of unpaid tax if still outstanding after 12 months
- in addition, interest will accrue on unpaid tax at a rate equal to the base rate + 4%.
Key differences in CGT reporting: UK residents vs UK non-residents
| Requirements | UK residents | Non-UK residents |
| CGT return required? | Only if tax is due on the disposal | Yes, for all UK land/property disposals, even with no tax due |
| Reporting deadline | 60 days from completion | 60 days from completion |
| Type of property affected | UK residential property only | All UK land/property (residential and commercial) |
| Trigger for reporting | Sale resulting in CGT liability | Any disposal, regardless of gain or loss |
| Late filing penalties |
£100 immediately +5% of unpaid tax after six months and 5% or unpaid tax again after 12 months |
Same as UK residents |
| Interest on unpaid tax | Yes, base rate +4% | Yes, the same rate and rules apply |
Many sellers are unaware of these requirements, particularly first-time disposers. We’ve seen this catch people out, which is why raising awareness is important, both for individuals and professionals involved in property transactions.
Calculating the taxable gain can be complex, with various reliefs and elections potentially reducing the CGT liability. There are also some simple planning opportunities ahead of a sale, such as transferring an interest in the property to a spouse,; however, professional advice should always be sought to ensure suitability.
If you're planning to sell UK land or property and want to understand the tax implications, it's worth seeking guidance early. Please do get in touch with your usual Crowe contact or by reaching out using the details below to discuss this topic in further detail.
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