New 60-Day CGT Rules for Residential Property - Part 1 of 3

Table of Contents

• Introduction to the 60-Day CGT Reporting Rule UK

• Who Is Affected by the 60-Day CGT Rule?

• What Counts as a ‘Residential Gain’?

• Exemptions from Reporting

• Reporting Timeline and Process

• Exceptions to the Rule

• Need to Fix or Update Your Return?

Introduction to the 60-Day CGT Reporting Rule UK

Since 6 April 2020, the 60-day CGT reporting rule UK has applied to the disposal of residential property by both UK and non-UK resident individuals. This regime introduced a shorter window to report and pay Capital Gains Tax (CGT) when selling UK residential property and failure to comply could mean penalties and interest.

In this first part of our 3-part series, we outline the scope of the new reporting regime, highlight key exemptions, and explain how the rules apply to mixed-use property.

Who Is Affected by the 60-Day CGT Rule?

The 60-day CGT reporting rule UK applies to individuals, personal representatives, trustees, and partners in partnerships who dispose of UK residential property. Companies are excluded from this regime as they fall under Corporation Tax rules instead.

Since 6 April 2020, any UK resident who directly disposes of an interest in UK land that leads to a residential property gain must comply with the new regime set out in FA 2019, Schedule 2.

🔎 Note: Non-UK residents were already required to report UK land disposals before this date, but the 60-day rule unified the approach for UK residents.

What Counts as a ‘Residential Gain’?

It's important to focus on disposals “on which a residential gain accrues”. Things get tricky when properties are mixed-use for instance, a shop with flats above it. Only the residential portion is reportable under the 60-day CGT rule; the rest is included in your normal Self Assessment return.

You must make a just and reasonable apportionment of the gain between residential and non-residential elements.

Exemptions from Reporting

Some disposals are excluded from the 60-day CGT reporting requirement. These include:

• Reliefs like Private Residence Relief (PPR)

• No gain or loss (NGNL) disposals (e.g. transfers between spouses or civil partners)

• Disposals by charities

• Gains fully covered by:

• Brought-forward losses

• Annual Exempt Amount (AEA)

• Reliefs like Private Residence Relief (PPR)

Reporting Timeline and Process

If you're within scope, you must report your CGT on UK property within 60 days of completion (not exchange!). This is a key change from the standard CGT approach, where date of exchange is usually the operative date.

⏰ Important: The 60-day period starts from the completion date, not the date of exchange.

Exceptions to the Rule

You don't need to submit a CGT return within 60 days if:

• The disposal results in a loss

• The gain is fully relieved or offset

• The Self Assessment deadline occurs before the 60-day window ends (due to timing differences)

For more detail on how the tax is calculated and paid, read Part 2 of our CGT series.

Need to Fix or Update Your Return?

Sometimes, even carefully filed returns need amending. In Part 3 of our CGT series, we explain how to amend returns, deal with overpayments, and avoid penalties.

Hope you have found this beneficial. Should you have any queries, please do not hesitate to contact me! 😊

Meet Omar Omar is a Chartered Tax Advisor (a.k.a an expert on tax issues) and founder of ASWATAX. He regularly shares his knowledge and best advice here in his blog and on other channels such as LinkedIn. Book a call today to learn more about what Omar and ASWATAX can do for you.

*Disclaimer: ASWATAX is a firm of Chartered Tax Advisors, and we strive to provide accurate, up-to-date tax insights. Tax laws may change, so this content is for general guidance only and not a substitute for professional advice. Seek independent tax and legal counsel before making decisions. ASWATAX is not liable for any loss from reliance on this information. Use at your own risk.