If you’re selling a second home, buy-to-let, or investment property, you’ll need to report and pay any Capital Gains Tax (CGT) within 60 days of completion.
With changes on the horizon—like the reduction in the SDLT threshold from April 2025 and the end of the favourable tax regime for holiday lets—many landlords and investors are looking to sell up while conditions remain favourable. But if you don’t report your gain on time, HMRC will charge interest and penalties.
Here’s everything you need to know about reporting and paying Capital Gains Tax on residential property sales.
When Do You Need to Pay Capital Gains Tax?
If the property you’re selling has been your only or main home throughout ownership, you probably won’t have to pay Capital Gains Tax (CGT)—thanks to Private Residence Relief (PRR).
However, if the property has been:
- A second home
- A rental or investment property
- A holiday let
- Only partially used as your main residence
Then CGT is likely to apply.
How Much CGT Will You Pay?
Capital gains tax on residential property gains is charged at:
- 18% on gains within the basic rate band (£37,700 for 2024/25)
- 24% on any gains above the basic rate threshold
If you have any available annual CGT exemption (£3,000 for 2024/25) or capital losses, you can use these to reduce your taxable gain.
How to Report Your Residential Property Gain
If your sale results in a CGT liability, you must report it to HMRC within 60 days of completion—and each co-owner must report their own gain separately.
Step 1: Report the Gain Online
You’ll need to set up an account and report the gain via HMRC’s online service:
Alternatively, if you can’t report online, you can request a paper form from HMRC.
Step 2: Information You’ll Need to Provide
When reporting the gain, HMRC will ask for:
✔️ Property details – address and postcode
✔️ Key dates – purchase date, contract exchange date, and completion date
✔️ Financial details – purchase price, sale price, and any associated costs (e.g. legal fees)
✔️ Improvements – costs of renovations or capital improvements
✔️ Reliefs & exemptions – any tax reliefs you’re claiming
How to Pay the CGT Bill
Your Capital Gains Tax payment is also due within 60 days of completion.
You can pay via:
- Online bank transfer
- Debit or corporate credit card
- Cheque (quoting your 14-character CGT payment reference)
What Happens If You Don’t Report & Pay on Time?
If you fail to report and pay CGT within 60 days, HMRC will charge interest and penalties—so don’t delay!
- Late reporting = penalties
- Late payment = interest charges
If your overall CGT position changes (e.g. you realise losses later in the tax year), you can adjust your tax liability through your Self Assessment return.
Need Help with Capital Gains Tax?
Selling a property and not sure how much tax you’ll owe? Want to maximise tax reliefs before reporting your gain?
Jon and the team can help you calculate your CGT liability, claim available reliefs, and ensure you meet the 60-day deadline. Get in touch today!
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk