Profits from Your UK Property Sale? Here’s the Next Step.

If you’ve recently sold a property in the UK and made a gain, there are some important steps to consider. Here’s a rundown of what you need to do.

Report Within the Time Frame:

Did your property sale make a profit? If the property wasn’t your primary residence for the entire duration you owned it or if it served as a rental or secondary home, it’s likely you’ll need to report that gain to HMRC. If the property was co-owned, each owner should report their respective share. Note: The reporting and any tax payment should be done within 60 days of the sale’s completion.

How to Report:

You can easily report the gain online using HMRC’s ‘Capital Gains Tax on UK Property’ account. Alternatively, if you’ve already submitted your annual tax return, or if you prefer a manual method, there’s a paper form available.

Information Checklist:

When you’re ready to report, make sure you have:

  • The property’s address and postcode.
  • Acquisition and sale dates.
  • Sale proceeds and original purchase price.
  • Costs related to property enhancements.
  • Any expenses from buying or selling.
  • Relevant tax relief details, if applicable.

For Non-UK Residents: You should report all UK property or land sales, regardless of any tax obligations.

Paying the Tax:

Upon reporting, HMRC will provide a payment reference, usually starting with an ‘X’. This reference is essential for paying the estimated capital gains tax, whether you’re using online banking or a cheque. Ensure this payment is made within the 60-day window.

Annual Tax Return Considerations:

When filing your annual tax return, it’s crucial to revisit and adjust your capital gains tax based on your overall financial picture for the year. This means accounting for other sales or any subsequent losses after the initial property gain tax payment.


In Summary:

Profit from selling property is a positive financial move. Stay compliant by following these steps and reporting accurately to HMRC. If in doubt, seeking guidance from a professional can be beneficial.

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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