Selling a property that is not your home: 60 days to report and pay
Gains on UK residential property have their own deadline: a return and payment within 60 days of completion. What is taxed, what reduces it, and how not to miss the date.
If you sell a UK residential property that has not always been your main home, such as a buy-to-let, a second home or an inherited house, you must report the sale to HMRC and pay any Capital Gains Tax within 60 days of completion. You still include it on your tax return afterwards.
Working out the gain
The gain is the sale price less the purchase price, the costs of buying and selling such as legal fees, estate agents’ fees and Stamp Duty, and the cost of improvements such as an extension. Repairs and redecoration are not deducted here, because they are claimed against rent.
For a higher-rate taxpayer, tax on £79,000 after the £3,000 allowance, at 24%: £18,960.
Show the data
| Bought for, with costs | £214,000 |
|---|---|
| Improvements | £18,000 |
| Selling costs | £6,000 |
| Taxable gain before allowance | £82,000 |
If it was once your home
Private residence relief covers the years you lived there, plus the final nine months of ownership. Letting relief now only applies if you lived in the property at the same time as your tenant.
Do not miss the date
- Ask us for an estimate before exchange, so the money is set aside.
- Gather the purchase completion statement and improvement invoices early.
- Married couples and civil partners can transfer shares between them before a sale, tax-free, to use both allowances.
More on
This insight is general information, not advice for your circumstances. Talk to us before acting on it.