Property Capital Gains Tax (UK) basics: what it is, when it applies, and reporting deadlines
UK property CGT basics: what counts as a gain, common cases (buy-to-let, inherited property), allowances, and the 60-day reporting rule.
Scope (what this page covers)
This is a plain-English reference page for UK property Capital Gains Tax (CGT) concepts based on GOV.UK guidance.
It is not tax advice. CGT can be complex and depends on your circumstances, reliefs, and accurate cost records. If you need certainty, speak to a qualified tax professional.
What Capital Gains Tax is (the key idea)
GOV.UK explains that Capital Gains Tax is a tax on the profit (gain) you make when you dispose of an asset that has increased in value. It’s the gain that is taxed, not the total sale proceeds.
“Disposing” can include selling, giving away, swapping, or receiving compensation (depending on the case).
When property CGT can apply
GOV.UK’s “Tax when you sell property” guidance notes you may have to pay CGT when you sell property that’s not your home, for example:
- buy-to-let properties
- inherited property
- land
- business premises
There are different rules for selling your main home (Private Residence Relief can apply) and for non-UK residents, companies, and some special cases.
The basic structure of “working out a gain”
At a high level, working out a gain usually involves:
- the amount you receive when you sell/dispose
- minus allowable costs (such as acquisition costs and certain improvement costs)
- equals gain
Then you consider:
- annual tax-free allowance (if available)
- reliefs (if applicable)
- and the tax rate rules for your position
Exact rules and what costs are allowable can vary; use GOV.UK as the primary reference.
The 60-day reporting and payment rule (UK property)
GOV.UK’s property sale guidance notes that if you sold UK property on or after 6 April 2020 and have tax on gains to pay, you generally must report and pay within 60 days for most sales of UK property (via the relevant reporting route described on GOV.UK).
This is a practical deadline that can catch people out, so treat it as part of your “sell property” checklist.
How Abodewise can help (planning only)
Use the Capital gains tax property calculator as a planning estimate to explore “what if” scenarios. Then validate the exact treatment and numbers against GOV.UK guidance and professional advice if needed.
What to do next
- If you’re selling a non-main-home property, start with GOV.UK: Tax when you sell property.
- If you’re selling UK property and may owe CGT, read GOV.UK’s reporting guidance (see sources) and plan for the 60-day deadline.