How to Report and Pay Capital Gains Tax on Property

When you sell or dispose of UK residential property, you must report any capital gain and pay the tax due within 60 days of completing the sale. This deadline applies even if you don't owe any tax, and missing it can result in interest charges and penalties.

Who needs to report

If you're a UK resident, you must report the sale if your total capital gains for the year exceed the tax-free allowance (known as the Annual Exempt Amount). If your total gains are below this threshold, you don't need to report.

If you're not a UK resident, you must report all sales and disposals of UK property or land by the deadline, even if you have no tax to pay.

The 60-day deadline

You have 60 days from the date you complete the sale (the completion date, not the exchange of contracts date) to both report the disposal and pay any Capital Gains Tax due. This is a strict deadline, and you may face interest charges and penalties if you miss it.

Before you report

You need to work out your gain and calculate how much tax you owe before you can report. To complete your report, gather the following information:

The address and postcode of the property
The date you acquired the property
The date you exchanged contracts when selling
The completion date (when you stopped being the property's owner)
The value of the property when you acquired it
The value when you sold or disposed of it
All costs of buying, selling or making improvements to the property
Details of any tax reliefs, allowances or exemptions you're entitled to claim

If you're not a UK resident, you'll also need to specify the property type.

Reporting online

The online Capital Gains Tax on UK property service is the main way to report. To use it, sign in or create an account through HMRC's online portal. If you don't already have sign-in details, you can create them when you access the service for the first time.

You can use your Capital Gains Tax on UK property account to:

Report and pay any tax due on UK property
View or change a previous return

If you're already registered for Self Assessment, you'll also need to include details of the sale in your Self Assessment tax return for that tax year.

Reporting by post

You must report by post if you:

Have already submitted a Self Assessment return for the same tax year
Need to amend a paper form already sent to HMRC
Are a corporate trustee
Are a personal representative who needs to amend a report
Cannot use the online service

To report by post:

1. Fill in the online form (you cannot save your progress, so have all information ready)

2. Save and print the completed form

3. Sign the declaration (or have your client sign if you're an agent)

4. Include any supporting evidence

5. Post it to HMRC using the postal address shown on the form

After HMRC receives your postal form, they'll send you a 14-digit payment reference starting with 'X'. You'll need this reference to pay what you owe within the deadline.

Jointly owned property

If you owned the property jointly with someone else, you must report your own gain or loss separately. Special rules apply if you give a UK property to your spouse, civil partner, or to charity.

Reporting on behalf of someone else

You can use your own Capital Gains Tax on UK property account to report for someone else. You'll need proof you're allowed to report on their behalf, such as a lasting power of attorney. If the person has died, you'll need their date of death.

You cannot pay using your account if you're reporting a gain on behalf of an estate as a personal representative. HMRC will let you know how to pay after you report the gain.

Keep a digital or printed copy of the return for your records.

You cannot view or change a return you've made for someone else online. You must complete an online form, print it, and send it to HMRC instead.

Reporting for a trust

If you're reporting on behalf of a trust, you'll need its Unique Taxpayer Reference (UTR) or Unique Reference Number (URN). If the trust doesn't have either, you must register the trust with HMRC before reporting, even if the trust is usually exempt.

If you're a non-resident trust, you must submit a report by the deadline even if there's no Capital Gains Tax to pay.

Corporate trustees must report by post rather than using the online service.

Ways to pay

You can pay after you report your gains by:

Approving a payment through your online bank account
Online or telephone banking
Debit or credit card
Cheque

Remember that payment must be made within the 60-day deadline, so choose a payment method that allows sufficient time for the payment to reach HMRC.

Changing a previous return

You can use your Capital Gains Tax on UK property account to view and change your own previous returns.

However, you cannot change a return:

For the 2023/24 tax year or earlier
If you have already sent a Self Assessment return for the same tax year as the Capital Gains Tax on UK property return

To change a return you made for someone else, complete an online form, print it, and send it to HMRC.

Sources

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