The 60-Day CGT Reporting Rule: What Every Landlord Needs to Know

Landlords who sell a UK residential property at a taxable gain must report the disposal to HMRC and pay the capital gains tax due within 60 days of completion. This 60-day reporting rule is separate from the annual self-assessment return, and missing it triggers automatic penalties and interest even where the tax itself is eventually paid. For anyone dealing with capital gains tax on rental property in the UK, the countdown starts on the day the sale legally completes, not the day contracts are exchanged.

Blue Tick Accountants, a Guildford-based UK tax advisory and accountancy practice, helps landlords calculate the gain accurately, claim every available relief, and file within the deadline. This article explains the 60-day rule, the CGT rates and exemptions for 2026/27, and the reliefs that reduce a landlord's bill.

Key Takeaways

• UK residents must report and pay capital gains tax on a residential property disposal within 60 days of completion where any CGT is due in 2026/27.
• Capital gains tax on residential property is charged at 18% within your remaining basic-rate band and 24% on gains above it in 2026/27.
• The capital gains tax annual exempt amount is £3,000 per person for 2026/27, so a jointly owned property gives a combined £6,000 exemption.
• Private Residence Relief exempts the final 9 months of ownership for a property that was once your main home.
• Lettings relief of up to £40,000 per owner now applies only where the landlord shared occupancy of the property with the tenant.

What is the 60-day CGT reporting rule for landlords?

The 60-day CGT reporting rule requires UK residents to tell HMRC about a taxable residential property gain and pay the tax within 60 days of the completion date. Reporting is done through HMRC's online Capital Gains Tax on UK Property service, and a return is required whenever there is CGT to pay on the disposal.

No 60-day return is needed where the gain is fully covered by Private Residence Relief, capital losses, or the annual exempt amount, because no tax is due. For a landlord selling a buy-to-let that has never been their home, however, a return will almost always be required. The deadline is strict: HMRC issues a late filing penalty followed by further penalties and interest if the return or payment is delayed.

For a full overview of how the tax works, see our guide to capital gains tax on rental property.

How much is capital gains tax on rental property in 2026/27?

Capital gains tax on residential property is charged at 18% and 24% in 2026/27, depending on your income. The part of the gain that falls within your remaining basic-rate income band is taxed at 18%, and any gain above that threshold is taxed at 24%.

Because the rate depends on your total income, a higher-rate taxpayer will usually pay 24% on the whole gain, while a basic-rate taxpayer may pay 18% on part of it before the higher rate applies. Every individual also has an annual exempt amount of £3,000 for 2026/27, deducted before tax is calculated. A property owned jointly, such as by spouses, benefits from two annual exemptions, giving a combined £6,000 tax-free. Selling a buy-to-let and managing the tax in 2026 therefore starts with knowing your income position for the year of sale.

Which reliefs and costs reduce a landlord's CGT bill?

Several reliefs and allowable costs reduce the gain a landlord pays CGT on, and claiming them fully can save thousands of pounds. The taxable gain is the sale proceeds less the original purchase price, less allowable costs and reliefs.

Allowable deductions include the stamp duty land tax paid on purchase, solicitor and estate agent fees on both purchase and sale, and capital improvements such as an extension or new kitchen that enhanced the property. Private Residence Relief applies where the property was once your only or main home, and always covers the final 9 months of ownership regardless of use during that time. Lettings relief of up to £40,000 per owner remains available, but only where you shared occupancy with your tenant, so it no longer helps most landlords who let the whole property after moving out.

How is the 60-day CGT calculated? A worked example

The 60-day CGT figure is the taxable gain after costs and the annual exempt amount, multiplied by the applicable residential rate. A worked example shows how the numbers combine for a typical landlord.

Suppose a higher-rate taxpayer bought a buy-to-let flat for £250,000 and sells it in 2026/27 for £340,000, a headline gain of £90,000. Allowable costs total £15,000: £2,500 stamp duty on purchase, £3,500 in legal and agent fees, and £9,000 on a capital improvement. The net gain falls to £75,000, and deducting the £3,000 annual exempt amount leaves £72,000. At the 24% higher rate, the CGT bill is £17,280. Because the property was never their home, no Private Residence Relief applies, so the full amount must be reported and paid within 60 days of completion.

Rental profits for the same tax year are reported separately and on a different timetable, as our guide to tax on rental income explains.

Frequently Asked Questions

When does the 60-day CGT clock start for a property sale?

The 60-day CGT reporting clock starts on the completion date of the sale, not the exchange of contracts. UK residents must file the CGT return through HMRC's online service and pay the tax within 60 days where any capital gains tax is due. Missing the deadline leads to automatic late filing penalties and interest on the unpaid tax.

Do I still report the gain on my self-assessment tax return?

Yes, a property gain that has been reported under the 60-day rule must also be included on your self-assessment tax return for the same tax year. The self-assessment return reconciles the full year's position, and any 60-day payment already made is credited against the final liability. Reporting twice does not mean paying twice.

Do I have to pay CGT if I sell a property I once lived in?

Not necessarily. If a rental property was once your only or main home, Private Residence Relief reduces the taxable gain and always covers the final 9 months of ownership. Whether CGT is due depends on how long you lived there versus let it out. Where relief and the £3,000 annual exempt amount cover the whole gain, no 60-day return is required.

Can a married couple use two annual exemptions on one property?

Yes, where a residential property is owned jointly by a married couple or civil partners, each owner has their own £3,000 annual exempt amount for 2026/27, giving a combined £6,000 tax-free. Each spouse is taxed on their share of the gain at their own income rate, so transferring a share before sale can sometimes reduce the overall CGT bill.

How Blue Tick Can Help

Blue Tick Accountants helps landlords calculate their capital gains tax accurately, claim every allowable cost and relief, and file the 60-day return correctly and on time. With careful planning before a sale, such as using both spouses' exemptions, the tax due on a buy-to-let disposal can often be reduced. Head to our website and book a meeting now.

Conclusion

Selling a buy-to-let is one of the few moments where a missed deadline costs a landlord real money, because the 60-day CGT report and payment run from completion and carry automatic penalties. Work out your gain, your income position and your available reliefs before you complete, not after. The earlier you plan, the more scope there is to use both annual exemptions and reduce the bill legitimately.

About the Author

This guide was written by Leon, founder of Blue Tick Accountants, a Guildford-based UK tax advisory and accountancy practice that helps landlords, self-employed people and limited company owners across the UK. It was last reviewed for the 2026/27 tax year.

This article is intended for general informational purposes only and does not constitute tax, legal, or financial advice. Tax rules are subject to change and their application will depend on your individual circumstances. You should always seek advice from a qualified professional before taking action. Blue Tick Accountants accepts no liability for decisions made on the basis of this content.

Related reading: Principal Private Residence Relief for Landlords: Can You Still Claim It?.

Related reading: Lettings Relief After the 2020 Changes: Who Still Qualifies?.