Worked Examples
Example: 60-Day CGT Report on a Residential Property
A step-by-step example of reporting and paying CGT on the sale of a UK rental property within 60 days of completion, including PRR for a period of owner occupation.
Quick answers
Do I need to report a property sale within 60 days?
Yes if the property is UK residential, you have a CGT liability after reliefs, and you're a UK resident. File via the UK Property Account on gov.uk and pay the estimated CGT within 60 days of completion. Non-residents must file regardless of whether tax is due.
Scenario
Marco Russo sold a London flat for £525,000 completing on 15 June 2025. He bought it for £280,000 in June 2014 and lived in it as his only home from June 2014 to May 2018 (47 months) before letting it out for the next 85 months. He's a higher-rate taxpayer.
Step 1: Calculate the gross gain
| £ | |
|---|---|
| Sale proceeds | 525,000 |
| Less estate-agent fees (2% + VAT) | (12,600) |
| Less solicitor on sale | (1,800) |
| Net proceeds | 510,600 |
| Less original purchase price | (280,000) |
| Less stamp duty paid in 2014 | (4,500) |
| Less solicitor on purchase | (1,500) |
| Less new kitchen 2017 (capital improvement) | (8,000) |
| Gain before reliefs | 216,600 |
(Routine repairs, redecoration and broken-boiler replacements aren't capital improvements and were already deducted against rental income.)
Step 2: Period of ownership and PRR
- Total ownership: June 2014 – June 2025 = 132 months
- Owner-occupation period: 47 months
- Plus the final 9 months of ownership are deemed PRR
- Total PRR: 47 + 9 = 56 months
PRR fraction: 56 / 132 = 0.4242
PRR relief = £216,600 × 0.4242 = £91,887
Step 3: Letting Relief
Letting Relief now only applies if the owner shared occupancy with the tenant. Marco didn't, so no Letting Relief.
Step 4: Chargeable gain
Gain after PRR: £216,600 – £91,887 = £124,713
Step 5: Annual exempt amount
Less AEA 2025/26 (£3,000): £121,713
Step 6: CGT due
Marco is a higher-rate taxpayer with no unused basic-rate band, so the entire gain falls in the upper band.
CGT @ 24% × £121,713 = £29,211
Step 7: 60-day reporting
Because it's UK residential property with CGT to pay, Marco must:
- Sign in to the UK Property Account on gov.uk (Government Gateway)
- Submit a CGT on UK Property return
- Pay £29,211
All within 60 days of completion — i.e. by 14 August 2025.
Step 8: Self Assessment
The same gain must also be reported on Marco's 2025/26 SA108 (Capital Gains pages) by 31 January 2027. Tax already paid via the property return is credited against the final SA bill — and any over- or underpayment reconciled there.
Step 9: Penalties for missing the 60-day deadline
| Lateness | Penalty |
|---|---|
| 1 day late | £100 |
| 6 months late | additional £300 (or 5% of CGT) |
| 12 months late | additional £300 (or 5% of CGT) |
Plus interest on unpaid CGT.
Common pitfalls
- Forgetting the final 9 months of deemed PRR
- Confusing revenue repairs (already in rental accounts) with capital improvements (allowable against the gain)
- Not deducting purchase costs (SDLT, legal, surveyor)
- Ignoring the 60-day clock — penalties apply even if the SA return is on time
General guidance, not tax advice. Speak to a qualified accountant for advice tailored to your situation. Figures relate to the 2025/26 UK tax year. Source: HMRC, gov.uk.
Frequently asked questions
Related guides
Capital Gains Tax on Property and Shares (2025/26)
Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of an asset. Rates for 2025/26 changed mid-year — residential property and other gains both rose, with new BADR rates phasing in to 2026/27.
Reference: UK CGT Rates and Allowances 2025/26
A reference summary of UK CGT rates, allowances and reliefs for 2025/26 — including the post-30 October 2024 rate changes and the new BADR/IR rate trajectory.