Sold a Rental Property? How to Report and Pay CGT Within 60 Days
RealYield Team
Property Analyst
Completion day on a rental property sale starts a 60-day clock. Miss it, and HMRC charges a penalty before anyone has even looked at whether you owe tax.
If you have sold, or are about to sell, a UK rental property, you need to report the gain and pay any Capital Gains Tax due within 60 days of completion. This is not part of your Self Assessment return and does not wait for the usual 31 January deadline. It is a separate HMRC service, with its own account, its own reference number, and its own penalties if you are late.
This guide walks through exactly what to do: who has to report, what information you need before you start, how the payment works, and what happens if the 60 days run out before you act. It also covers a change to the penalty rules that landed at Budget 2026, which affects anyone who ends up reporting a sale late.
The 60-day rule, in plain terms
For UK residents, the clock starts on the completion date, the day legal title actually transfers, not the day you exchanged contracts or the day the property stopped being tenanted. From that date you have 60 days to:
- Work out your gain
- Report it through HMRC's Capital Gains Tax on UK Property account
- Pay the tax due
Both the report and the payment are due inside the same 60-day window. There is no extra grace period for payment once you have reported.
Do you need to report at all? If your total taxable gains for the year sit below your annual exempt amount, currently £3,000, you do not need to make a 60-day report. Work out the gain first using the figures for that specific property: sale price, purchase price, buying and selling costs, and any capital improvements. If the figure comes out under the exempt amount, or a relief removes the gain entirely (for example, if the property was your home throughout and full Private Residence Relief applies), there is usually nothing to report through this service.
Frequently Asked Questions
How many days do I have to report and pay CGT after selling a rental property?
60 days from the completion date, not the date you exchanged contracts or the date you moved out. This applies to UK residents disposing of UK residential property on or after 27 October 2021. Both the report and the payment are due within the same 60-day window.
Do I need to report the sale if my gain is covered by the annual exempt amount?
If your total gains for the tax year are below your annual exempt amount, currently £3,000, HMRC does not require a report through the 60-day service. Work out your gain first using the property's figures. If you are a non-UK resident, the position is different: you must report every disposal of UK land or property within 60 days regardless of whether any tax is due.
What happens if I miss the 60-day deadline?
An automatic £100 penalty applies as soon as the return is late, whether or not there is tax to pay. The rules allow HMRC to add daily penalties of £10 for up to 90 days once a return is 3 months late and it has given notice, but HMRC confirmed in August 2022 that it does not charge this penalty in practice, for UK residents or non-residents. Further penalties of the greater of £300 or 5% of the tax due apply at 6 months and again at 12 months. Interest also runs on any CGT paid late, currently 7.75%, rising to 8.00% from 24 November 2026.
Do I still need to put the sale on my Self Assessment return?
Yes, if you already complete one. The 60-day report is separate from Self Assessment and comes first. The disposal must also appear on your annual return, where any CGT already paid is credited and the final position is reconciled. The 60-day return is not a substitute for including the sale on your Self Assessment return, and vice versa.
Has the penalty for late CGT reporting changed recently?
From returns affected by Finance Bill 2026, HMRC stops ongoing late filing penalties once the disposal has been reported through Self Assessment, even if the original 60-day return was missed. It applies where the Self Assessment return is delivered on or after 28 October 2026. It does not remove the requirement to file the 60-day return, and it does not cancel any penalty that had already become due before the Self Assessment return went in.
How do I actually pay the CGT once I have reported it?
After you submit the report, you can pay by approving a payment through your online bank account, by online or telephone banking, by debit or credit card, or by cheque. If you report by post rather than online, HMRC sends a 14-character payment reference starting with X, which you need before you can pay.
Can a letting agent or accountant report the sale for me?
Yes. An agent can create and submit the return on your behalf once you have authorised them, and this is common where a seller is abroad or unfamiliar with the Government Gateway process. You remain responsible for the deadline and the accuracy of the figures either way.
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