A UK resident only has to make a 60 day return for a sale of UK residential property if there is capital gains tax to pay on account. If the gain is covered by private residence relief, the annual exempt amount or losses, or the sale makes a loss, no return is required. Non residents are different: they must report every disposal of UK property within 60 days, even with no tax to pay.

Where does the 60 day requirement come from?

The rules are in Schedule 2 to the Finance Act 2019. Paragraph 1(1) applies the schedule to two kinds of disposal:

  • disposals of UK property by someone who meets the non residence condition, made on or after 6 April 2019, whether or not a gain accrues; and
  • any other direct disposal of UK property on which a residential property gain accrues, made on or after 6 April 2020.

Paragraph 3 says the return must be delivered on or before the 60th day following completion. GOV.UK confirms the 60 day limit applies to completions on or after 27 October 2021, with 30 days for completions between 6 April 2020 and 26 October 2021. Paragraph 6 makes any tax notionally chargeable payable on the same day, as a payment on account of the year’s liability. How to file one is covered in the 60 day property return; this page deals with when you can leave it out.

When does a UK resident not need to make a return?

Several separate rules take a disposal out of the requirement:

  • No residential property gain. The second limb of paragraph 1(1) only bites where a residential property gain accrues. A sale at a loss, or a home sale fully covered by private residence relief, produces no such gain. Sales of commercial property are outside it too.
  • No tax payable on account. Paragraph 4 says that where a disposal falls under that second limb and you would not be liable to pay an amount on account, you need not make a return. This covers gains within the annual exempt amount or covered by allowable losses.
  • Excluded disposals. Paragraph 1(2) excludes disposals on a no gain no loss basis, such as most transfers between spouses or civil partners, the grant of a lease for no premium at arm’s length to an unconnected person, disposals by charities and disposals of pension scheme investments.
  • Return already filed. Paragraph 5 removes the requirement if, before the 60 day deadline, you have filed your Self Assessment return for the year taking account of the disposal, or if the 60 day deadline would fall on or after the date by which that Self Assessment return must be filed.
  • Property abroad. The schedule only covers property in the United Kingdom; see selling a property abroad.

GOV.UK summarises the position for UK residents: you do not need to report your gains online if your total gains are less than the tax free allowance, which is £3,000 for 2026 to 2027.

What changes for non residents?

The first limb of paragraph 1(1) applies “whether or not a gain accrues”, and paragraph 4 only relieves disposals under the second limb. So a non resident must report a sale of UK property, residential or not, even where there is a loss or no tax. GOV.UK says non residents must report disposals of UK property even if they have no tax to pay, have made a loss, or are registered for Self Assessment. That includes residential, non residential and mixed use property. See non resident CGT on UK property.

How is the tax due within 60 days worked out?

Paragraph 7 sets the amount notionally chargeable at the date of the return. It is the tax you would owe for the year so far, with two groups of disposals ignored:

  • disposals completing after the property sale being reported; and
  • disposals producing gains that are not within the 60 day regime, such as gains on shares.

Paragraph 7(3) keeps in a loss on any disposal made, under the contract date rule in section 28 of the Taxation of Chargeable Gains Act 1992, on or before the completion date. Two practical consequences follow. A share loss earlier in the year reduces the 60 day tax, but a share gain earlier in the year does not use up the annual exempt amount for this purpose. And a loss made after completion cannot reduce the 60 day payment; it is reflected only when the Self Assessment return is filed. For a mixed use property, paragraph 7(3A) ignores the part of the gain that is not a residential property gain.

Worked example: two flat sales in one year

Illustration only. Jo, a UK resident, has no other disposals in 2026 to 2027 apart from these:

Disposal Gain 60 day position
Let flat A, completes in May 2026 £2,500 Within the £3,000 annual exempt amount, so no tax on account and no return under paragraph 4
Let flat B, completes in September 2026 £20,000 Notional tax is worked out on both gains (£22,500) less £3,000, so tax on £19,500 is due and a return is required
Shares sold in January 2027 £4,000 loss Too late to reduce the flat B payment

Jo then files a Self Assessment return reporting both flats and the shares. The share loss reduces the final liability, and section 59B of the Taxes Management Act 1970 treats the 60 day payment as a payment on account, so any excess is set against the balance or repaid. How this is entered is covered in completing the SA108.

Should you file a return anyway if you made a loss?

You can. Paragraph 9 lets you make a return for a residential disposal that produced an allowable loss, so that paragraph 8 can apply. Paragraph 8 says that if payments on account already made for the year exceed the tax notionally chargeable at the new return’s filing date, the excess is repayable on that date. This is useful where you paid tax on an earlier property sale in the same year and want it back before the Self Assessment return.

What if you are unsure whether tax is due?

Paragraph 14 says you assume a relief or claim will apply if, at completion, it is reasonable to expect it will, and you may use a reasonable estimate of values. Paragraph 15 lets you revisit the figures if a relief later turns out to apply or an estimated value becomes known. So if you expect full private residence relief, you can reasonably conclude no return is due. If a gain looks likely but the figures are uncertain, a return with estimates is safer than none; see valuations for capital gains.

GOV.UK says you may have to pay interest and a penalty if you do not report and pay on time, and that each joint owner reports their own gain or loss.

What are the common mistakes?

  • Assuming the annual exempt amount is available when an earlier property sale in the same year has already used it.
  • Thinking registration for Self Assessment removes the 60 day requirement, when only a return already filed does.
  • A non resident relying on private residence relief or a loss and not reporting at all.
  • Expecting a later loss on shares to cut the 60 day payment.
  • Making a 60 day return for a sale of commercial property or a property abroad as a UK resident.
  • One joint owner reporting the whole gain instead of each owner reporting their share.

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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.