The 60-day CGT reporting rule: what Brighton property sellers need to know

Since April 2020, there is a rule that catches many Brighton property sellers completely off guard: if you sell a UK residential property and Capital Gains Tax is due, you must report it to HMRC and pay the tax within 60 days of completion. Miss this deadline and you receive an automatic penalty.

Who does the 60-day rule apply to?

• Buy-to-let properties
• Second homes and holiday lets
• Inherited residential properties
• Properties that have not been your main residence for the entire period of ownership

The penalties for missing the 60-day deadline

• An immediate £100 penalty for filing after the 60-day deadline
• A further £300 (or 5% of the tax due) if still not reported after 6 months
• A further £300 (or 5% of the tax due) after 12 months
• Interest on the unpaid tax from the 60-day deadline onwards

Common calculation mistakes

Not claiming all eligible costs

Buying and selling costs, solicitors fees, estate agent fees, SDLT paid on purchase, and the cost of capital improvements (not repairs) can all be deducted from the gain.

Missing Private Residence Relief

If the property was your main home at any point, you may be entitled to Private Residence Relief for those periods — and an additional nine months at the end of ownership regardless.

Assuming your accountant will handle it automatically

The 60-day report is a separate requirement from your annual self-assessment return. Even if you have an accountant who files your self-assessment, you need to specifically ask them to handle the 60-day report.

CGT rates on residential property

CGT on residential property is taxed at 18% (basic rate) or 24% (higher rate) following the 2024 Autumn Budget changes — higher than the standard CGT rates on other assets.