Capital Gains Tax (CGT) is a significant factor when selling or otherwise disposing of property in the UK. Understanding the rules helps you plan ahead, avoid surprises, and ensure compliance with HM Revenue & Customs (HMRC).

CGT is payable on the gain made when you sell or dispose of an asset that has increased value.

When CGT Applies to UK Property Disposals

You may need to report and pay CGT if you sell or dispose of:

A UK residential property that is not your main home, such as a buy-to-let property or second homes.
A main home where Private Residence Relief does not fully apply, for example, if the property had been your main residence and subsequently let out or the grounds exceed permitted limits.
A property that was inherited and later sold at a gain.

The 60-Day Reporting Deadline

Since 6 April 2020, any UK resident must report and pay the Capital Gains Tax Liability within 60 days of the completion date of the disposal of UK residential property, where a CGT liability is due.

Non-UK residents must report all UK property disposals, including residential and non-residential assets, regardless of whether or not any gain has been made.

How to Report a Gain

Reporting the gain is completed online using the HMRC’s UK Property Reporting Service (also known as the CGT on UK Property Account). An account will need to be created to report the gain and pay the tax due. Those who are not able to use the online service may complete and submit a paper report.

If you also complete a Self-Assessment Tax Return, the reported gain must also be included as a disclosure on the Return, including the details of payment made from the 60 day reporting requirement.

When a Report is not Required

If you are a UK resident, you do not need to submit a report if the entire gain is covered by your annual CGT exemption, or if the property was your only or main residence and qualifies in full for Private Residence Relief. However, if any CGT is due, the online report is still required, even if you plan to include it in your tax return later.

Rates and Allowances

For the 2025/26 tax year, individuals have an annual exempt amount of £3,000. CGT on gains from residential property is charged at 18% for basic rate taxpayers and 24% for those in the higher or additional rate bands.

Penalties and Interest

Late reporting may result in penalties, and interest is also charged on the late payment of tax. Penalties apply even if no tax is due, especially for non-residents.

Need Help Navigating the Rules?

If you are unsure about your obligations or would like assistance with calculating, reporting, or paying CGT, our team is here to help. Get in touch today for expert advice tailored to your situation.