When Do I Need to Pay Capital Gains Tax?

When Do I Need to Pay Capital Gains Tax?

If you've sold an asset and made a profit, it's important to understand when you need to pay Capital Gains Tax to avoid penalties. The deadline depends on what you've sold: property sales have a strict 60-day reporting and payment deadline, while gains from other assets are reported and paid through Self Assessment by the usual 31 January deadline.

The 60-day deadline for property sales

If you've sold or disposed of a UK residential property and have Capital Gains Tax to pay, you must report and pay the tax within 60 days of completion. This is a firm deadline that applies even if you're not registered for Self Assessment.

You report and pay this tax through a Capital Gains Tax on UK property account, which is separate from your Self Assessment tax return. This 60-day rule applies to residential property sales that completed on or after 6 April 2020.

Missing this deadline can result in penalties and interest charges, so it's important to act quickly after selling a property.

Payment dates for other assets through Self Assessment

For all other assets that attract Capital Gains Tax—such as shares, business assets, personal possessions worth £6,000 or more, or cryptocurrency—you report and pay through Self Assessment.

The payment deadline is 31 January following the end of the tax year in which you made the gain. For example, if you sold shares in the 2025/26 tax year (which runs from 6 April 2025 to 5 April 2026), you would need to pay any Capital Gains Tax due by 31 January 2027.

When you need to report even if there's no tax to pay

Even if your total taxable gains are below the annual Capital Gains Tax allowance (currently £3,000), you may still need to report your gains in your Self Assessment tax return if you're registered for Self Assessment.

You need to report if the total amount you sold the assets for was more than £50,000 in the tax year 2023 to 2024 onwards. For earlier tax years, the threshold was 4 times your allowance.

This reporting requirement applies even when you don't owe any tax because your gains are covered by your allowance or losses.

Working out your taxable gains

To determine whether you need to pay Capital Gains Tax, you need to:

1. Work out the gain for each asset you've disposed of during the tax year (6 April to 5 April)

2. Add together the gains from each asset

3. Deduct any allowable losses from the same tax year or previous years

If your total taxable gains after deducting losses are above £3,000 (the current Capital Gains Tax allowance), you'll need to report and pay.

Remember that it's the gain you pay tax on, not the total amount you receive. For example, if you bought shares for £10,000 and sold them for £18,000, your gain is £8,000.

What counts as 'disposing of' an asset

Capital Gains Tax applies when you dispose of an asset, which includes:

• Selling it
• Giving it away as a gift
• Transferring it to someone else
• Swapping it for something else
• Getting compensation for it, such as an insurance payout if it's been lost or destroyed

Each of these events can trigger a Capital Gains Tax liability if the gain exceeds your annual allowance.

Special cases: gifts and jointly owned assets

You don't usually pay Capital Gains Tax on gifts to your husband, wife, civil partner or a charity. However, your spouse or civil partner may need to pay tax if they later sell the asset.

If you dispose of an asset you jointly own with someone else, you pay Capital Gains Tax on your share of the gain only. Each owner calculates their own gain and uses their own annual allowance.

Tax-free assets

Some assets are always tax-free for Capital Gains Tax purposes, including:

• Your car
• ISAs or PEPs
• UK government gilts and Premium Bonds
• Betting, lottery or pools winnings
• Your main home (in most circumstances)

You never need to pay or report Capital Gains Tax on these assets, regardless of the gain you make.

What happens if you're late

The 60-day deadline for property sales and the 31 January deadline for Self Assessment are strict. Late payment can result in:

• Interest charges on unpaid tax
• Penalties for late filing and payment
• Additional penalties if the delay continues

If you've made a gain that requires reporting, it's worth getting your calculations done early and making a note of the relevant deadline in your calendar.

Sources

• Capital Gains Tax: what you pay it on, rates and allowances

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.