A Capital Gains Tax UK property return filed after the 60 day deadline attracts an automatic £100 penalty, with further penalties of the greater of 5% of the tax and £300 once it is 6 and 12 months late, and HMRC can also charge daily penalties after 3 months. Interest runs on unpaid tax from the 60 day deadline, but the specific late payment penalty for these payments only arises where the tax is not included in a Self Assessment return and is still unpaid 30 days after the following 31 January.

When is a 60 day return due?

Schedule 2 to the Finance Act 2019 requires a return, and usually a payment on account, for two groups of disposals:

  • disposals of UK property by non residents, including indirect disposals, whether or not there is a gain;
  • other direct disposals of UK residential property on which a residential property gain accrues, made on or after 6 April 2020.

The return must be delivered on or before the 60th day following completion (paragraph 3). The 60 day limit applies to completions on or after 27 October 2021; earlier completions had 30 days. A UK resident does not need to file if no payment on account would be due, for example because reliefs, losses or the annual exempt amount cover the gain (paragraph 4), but GOV.UK is clear that non residents must report every disposal even where there is no tax to pay. A return is also not required if the person has already delivered a Self Assessment return covering the disposal before the 60 day deadline (paragraph 5). Our guide to the 60 day property return covers how to file.

What are the penalties for filing late?

The return is item 2A in the table in paragraph 1 of Schedule 55 to the Finance Act 2009, and paragraph 2 applies the standard penalties in paragraphs 3 to 6 to it:

When Penalty
Day after the 60 day deadline (the penalty date) £100
Still outstanding 3 months after the penalty date £10 a day for up to 90 days, but only if HMRC decides to charge them and gives notice
Still outstanding 6 months after the penalty date Greater of 5% of the tax that would have been shown and £300
Still outstanding 12 months after the penalty date Greater of 5% and £300, or up to 70% or 100% (higher where offshore information is involved) where information is deliberately withheld

Because the £300 minimum does not depend on any tax being due, a non resident who sells at a loss and never files can still face £100 plus £300 at 6 months and another £300 at 12 months, even though the tax on the return would be nil. The 12 month penalties can be reduced for disclosure where they are based on deliberate withholding, but HMRC says the 5% version cannot be reduced for disclosure (CH62080).

How does late payment interest work?

The payment on account is due on the filing date for the return, so on the 60th day after completion (paragraph 6(3)). Late payment interest under section 101 of the Finance Act 2009 runs from the date the amount becomes due and payable until it is paid; paragraph 31 of Schedule 2 brings sums due under these returns within that regime.

The late payment interest rate is the Bank of England base rate plus 4% from 6 April 2025. HMRC’s published rate has been 7.75% from 9 January 2026. Interest is not a penalty and cannot be appealed on reasonable excuse grounds; the only way to stop it is to pay. Where an amended return increases the tax, HMRC’s guidance at CH143240 says interest on the extra tax starts from the date it would have been due had the original return been right.

When is there a late payment penalty?

Late payment penalties come from Schedule 56 to the Finance Act 2009. Item 3B in its table covers an amount payable under paragraph 6 of Schedule 2 to the Finance Act 2019 only where it is not included in a Self Assessment return under section 8 or 8A of the Taxes Management Act 1970. The penalty is incurred only after the date falling 30 days after 31 January in the tax year following the one in which the disposal was made.

Where it applies, paragraph 3 of Schedule 56 sets the penalty at 5% of the unpaid tax, a further 5% of any amount still unpaid 5 months after the penalty date, and another 5% of any amount unpaid 11 months after it. In practice, a person who pays a few weeks late will usually face interest but not a late payment penalty, while someone who neither pays nor reports the gain in a Self Assessment return can face both.

What does a late return cost in practice?

Illustration only. Assume the interest rate stays at 7.75%.

Daniel, a UK resident, completes the sale of a buy to let flat on 1 June 2026 with CGT of £8,000 due. The 60th day after completion is 31 July 2026. He files and pays on 15 September 2026.

  • Late filing penalty: £100.
  • Interest: roughly £8,000 x 7.75% x 46/365, about £78.
  • No late payment penalty, because item 3B penalties cannot arise until after the 30 day period following 31 January 2028.

If Daniel had forgotten the return entirely and filed it in February 2027, more than 6 months after the 1 August 2026 penalty date, he would also face a 6 month penalty of £400 (5% of £8,000, being more than £300), plus any daily penalties HMRC chose to charge, and interest for the whole period.

Who is liable when trustees or personal representatives report?

Trustees and personal representatives must also file and pay within 60 days where the rules apply. GOV.UK says a trust needs a Unique Taxpayer Reference or Unique Reference Number to report, and that non resident trusts must report by the deadline even if no tax is due. For trustees, section 107A of the Taxes Management Act 1970 allows a Schedule 55 penalty, and a payment due under Schedule 2 to the Finance Act 2019, to be recovered from any one or more of the relevant trustees, but only once.

Can a late filing penalty be appealed?

Yes. Paragraph 20 of Schedule 55 gives a right of appeal against both the penalty and its amount, and paragraph 23 cancels liability where there is a reasonable excuse, subject to the usual limits: lack of funds is not an excuse unless caused by events outside the person’s control, reliance on an adviser or conveyancer is not an excuse unless the person took reasonable care, and the return must be filed without unreasonable delay once the excuse ends. Appeals should normally be made within 30 days of the penalty notice by following the instructions on it. Our guides to reasonable excuse and appealing a late filing penalty explain what evidence helps.

HMRC can also reduce a penalty because of special circumstances, which cannot include ability to pay (paragraph 16).

What mistakes cause penalties?

  • Counting 60 days from exchange of contracts instead of completion.
  • Non residents assuming no return is needed because there is a loss.
  • Thinking the gain can simply wait for the Self Assessment return, which avoids a 60 day return only if that return is actually filed before the 60 day deadline.
  • Filing the return but not paying, so interest keeps running.
  • Not correcting a wrong figure; see amending a 60 day CGT return.
  • Overlooking the separate rules for non residents in non resident CGT on UK property.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.