Selling a property or cashing in on investments this year? If you’ve pocketed a profit, you’ll need to file a CGT return, and the clock starts ticking the moment the sale goes through.
HMRC’s 60-day Capital Gains Tax (CGT) rule means you can’t afford to drag your feet. But don’t stress, we’ll explain what you need to do, step by step.
What’s the 60-Day CGT Rule All About?
Since 2020, UK residents selling second homes, rental properties or holiday lets have had just 60 days from completion to report gains and pay any tax due. The rule was brought in to speed up tax collection, and in 2025, it’s still catching people out.
Key things to know
· Applies to residential property (not your main home if covered by Private Residence Relief).
· You must file a CGT return online and make a payment on account.
· Miss the deadline? Penalties and interest will start piling up.
Who Needs to Worry About This?
Not every sale will trigger the 60-day rule. You’ll need to act fast if:
§ You’re selling a buy-to-let, holiday home or inherited property.
§ You’ve sold crypto, shares, or other assets and your gains surpass the £3,000 annual CGT allowance (2025 rate).
§ Your profits push you into a higher tax bracket.
Example: Sell a rental flat for £40,000 more than you bought it? After deducting costs and your £3,000 allowance, you’ll owe tax on £37,000, and must report it within two months.
How to Work Out What You Owe
Calculating your bill isn’t as scary as it sounds. Here’s the breakdown.
1. Start with your profit – Sale price minus what you paid, plus any buying/selling fees and improvements.
2. Deduct your CGT allowance – For 2025, it’s £3,000 (down from £6,000 last year).
3. Apply the right tax rate –
a. 18% if you’re a basic-rate taxpayer.
b. 24% if you’re a higher-rate payer (new rate for property gains in 2025).
Tip: If you’ve sold other assets (like stocks or crypto) in the same tax year, add up all gains to see which tax band you fall into.
Filing Your Return
HMRC’s online system makes it pretty simple. Here’s how to file a CGT return before the deadline.
1. Log in (or sign up) to your Government Gateway account.
2. Fill in the property details – Dates, sale price, purchase costs and any expenses.
3. Pay your estimated tax bill – Debit card or bank transfer works.
Made a mistake? Don’t sweat, you can correct it later via your Self Assessment return.
What If You Miss the 60-Day Deadline?
HMRC doesn’t mess around with late filings. You could be hit with:
§ An instant £100 fine (even if you don’t owe any tax).
§ Extra penalties if you’re more than 3 months late.
§ Interest charges on unpaid tax (currently 7.75% as of 2025).
Smart move: Set a phone reminder as soon as you exchange contracts — those 60 days disappear fast.
Don’t Get Caught Out
The 60-day rule keeps you on your toes, but with a bit of planning you can file CGT return without the last-minute panic.
If your finances are complicated (multiple sales, overseas assets, etc.), a tax advisor can help dodge costly errors.
