What is the 60-day rule for CGT on property?

For disposals of UK residential property made on or after 27 October 2021, you must report the gain and pay any CGT due to HMRC within 60 days of the completion date.

Is my main home subject to Capital Gains Tax?

Generally, if the property has always been your main home and you've lived in it for the entire period of ownership, you will likely qualify for Private Residence Relief and won't pay CGT on its sale.

What expenses can I deduct from my gain?

Allowable expenses include the original purchase price, stamp duty, solicitor fees for buying and selling, estate agent fees, and costs of improvements (not repairs) that enhance the property's value.

Can I offset losses against capital gains?

Yes, if you have made capital losses from other asset sales, you can use these to reduce your capital gains and therefore your CGT liability. These losses must be reported to HMRC.

Capital gains on property

Book Capital gains on property

Capital Gains Tax (CGT) is a tax on the profit you make when you sell or 'dispose of' an asset that has increased in value, such as a property that isn't your main home. A professional accountant can help you accurately calculate this tax, ensuring all reliefs and deductions are applied, and assist with the 60-day reporting requirement for UK residential property sales.

When do you need a Capital gains on property?

This service is needed when you sell a property that is not your main home, such as a buy-to-let, holiday let, or inherited property. For UK residential property, you must report the sale and pay any CGT within 60 days of completion.

What happens on the day

You will have a consultation with an accountant to provide details of your property sale, including purchase and sale prices, dates, and any relevant expenses. The accountant will then calculate your CGT liability and prepare the necessary submission to HMRC within the 60-day deadline. You will review and approve the figures.

How to prepare

Gather records of your property purchase price.
Collect records of the property sale price.
Collate receipts for all allowable costs (e.g., stamp duty, solicitor fees, improvements).
Know the exact dates of purchase and sale.
Provide details of any periods the property was your main home.

How to improve your result

Keep meticulous records of all property-related expenses.
Seek advice before selling to plan for CGT.
Understand the 60-day reporting deadline for residential property.
Explore all possible reliefs, such as Private Residence Relief.

Why it is useful day to day

Ensures accurate calculation of your tax liability, potentially saving you money by identifying all applicable reliefs and avoiding penalties for incorrect submissions. Provides peace of mind with timely and compliant reporting to HMRC.

Why we ask these questions

We ask about purchase and sale prices, dates, and associated costs because these are fundamental to calculating your gain. Details on property use (e.g., rented, personal use) help identify applicable reliefs like Private Residence Relief. Understanding your tax residency is crucial for determining tax treatment.