Date posted: 27th Mar 2025
For almost five years now, HMRC have required individuals to report sales of UK residential property within 60 days of the sale.
This applies for UK residents where there is tax payable. So, if there is no tax to pay, there is no 60-day report needed for UK residents – but a report on the annual tax return may still be required if the proceeds exceed £50,000. For non-resident individuals, they are required to report the sale within 60 days regardless of whether there is any tax payable. If there is tax payable, the tax is also payable within the 60-day window.
Tax on the sale of residential properties is usually due when the property has not been an individual’s main home throughout the entire period of ownership – so perhaps a second home or an investment property. Tax charges can arise if the property has not always been the main residence (this could be because another property was nominated as the main residence) or perhaps the individual has moved for jobs. Although other reliefs may be applicable in the latter scenario. Also, tax can arise where not all of the residential property has been used for personal reasons (perhaps part has been used as a business or let out) or the grounds exceed half a hectare and can’t be demonstrated as being for the reasonable enjoyment of the property.
An odd quirk, to the rules occurs around this time of year (February/March) as there is no need to submit a separate stand-alone CGT return, where the information will be declared on a self assessment tax return filed within 60 days of completion. For example, lets say the property sale completes on 28 February 2025. As long as the 2024/25 Return is then filed within 60 days (say by 25 April 2025), then there is no need to file a separate stand alone CGT return. In addition, as the gain is declared via self assessment, the taxpayer would have until 31 January 2026, to pay the CGT, instead of the normal 60-day timeframe.
We are still seeing new clients who are unaware of the 60-day rule – it is important to ensure that it is adhered to, as late filing penalties will be imposed by HMRC.
As ever, we are here to help with any property tax queries, contact the team here.
