The 60-Day CGT Property Reporting Deadline: What Gravesend Property Owners Must Know

Sold a UK residential property? You must report and pay Capital Gains Tax within 60 days of completion. Missing this deadline can result in penalties and interest charges. Here's what Gravesend property owners need to know.

Understanding the 60-Day CGT Reporting Rule

If you've sold a UK residential property with a completion date on or after 27 October 2021, you must report and pay any Capital Gains Tax (CGT) due within 60 days of the completion date. This is significantly faster than the traditional Self Assessment deadline and catches many property sellers in Gravesend and across Kent off guard.

Who Does This Apply To?

The 60-day reporting requirement applies if you've sold:

• Buy-to-let properties
• Second homes or holiday homes
• Properties you've inherited and didn't live in as your main residence
• Any UK residential property where you have a taxable gain

This rule applies to UK residents and non-residents alike. Even if you're not a UK resident, you must report all UK property disposals by the deadline, even if there's no tax to pay.

Properties That Don't Require 60-Day Reporting

You don't need to use the 60-day CGT property reporting service if:

• The property was your only or main residence throughout ownership and you're entitled to full Private Residence Relief
• Your total gains are below the annual tax-free CGT allowance (£3,000 for 2024/25)
• You sold the property before 6 April 2020 (use Self Assessment instead)

How to Report and Pay

You must use the online 'Capital Gains Tax on UK property account' service to:

• Report the sale and calculate your gain
• Pay any tax due
• View or amend previous returns

Information You'll Need

Before starting your report, gather:

• Property address and postcode
• Date you acquired the property
• Date of exchange of contracts
• Completion date (when you stopped being the owner)
• Property values at acquisition and disposal
• All costs of buying, selling, and improving the property
• Details of any reliefs, allowances, or exemptions you're claiming

CGT Rates and Calculations

The CGT rates for residential property are:

• 18% for basic rate taxpayers
• 24% for higher and additional rate taxpayers

Your gain is calculated as: Sale price minus purchase price minus allowable costs minus your annual exempt amount.

Common Reliefs for Gravesend Property Owners

Private Residence Relief: If you lived in the property as your main home for part of the ownership period, you may get relief on a proportional basis. The final 9 months of ownership always qualify for relief if the property was ever your main residence.

Letting Relief: This has been significantly restricted since April 2020 and now only applies in limited circumstances where you shared occupancy with a tenant.

The Risks of Missing the 60-Day Deadline

HMRC takes the 60-day deadline seriously. If you miss it, you may face:

• Automatic penalties starting from day 61
• Interest charges on unpaid tax
• Increased scrutiny from HMRC
• Potential investigation into other tax affairs

Many property owners in Gravesend and throughout Kent are unaware of this tight deadline and assume they can simply include the disposal in their annual Self Assessment. This is incorrect and will result in penalties.

Self Assessment Still Required

Even after reporting through the 60-day service, if you're registered for Self Assessment, you must also include the property disposal details in your Self Assessment tax return for that tax year. This means the transaction is reported twice through different systems.

Jointly Owned Properties

If you owned the property jointly, each owner must report their own share of the gain separately. You cannot submit a joint return. Special rules apply if you gifted property to your spouse or civil partner.

Complex Situations Requiring Professional Help

Several scenarios make CGT calculations particularly complex:

• Properties that were sometimes your main residence and sometimes let out
• Properties with mixed use (part residential, part business)
• Inherited properties where probate values differ from market values
• Properties improved significantly during ownership
• Properties owned for many years with multiple periods of use
• Multiple property ownership requiring main residence election

How MCC Partners Can Help

At MCC Partners, based at 1a Saddington Street in Gravesend, we specialise in property tax matters for local clients. Our services include:

• Accurate CGT calculations considering all available reliefs
• 60-day CGT reporting service filing
• Advice on main residence elections
• Planning strategies to minimise future CGT liabilities
• Handling HMRC correspondence and enquiries
• Integration with your annual Self Assessment

Don't Leave It Until Day 59

The 60-day deadline arrives quickly, especially when you're dealing with the stress of completing a property sale. Many sellers in Gravesend leave this task until the last minute and then struggle to gather all necessary information in time.

We recommend starting the CGT calculation process as soon as you exchange contracts. This gives you time to identify all relevant costs, claim appropriate reliefs, and ensure accurate reporting.

If you've sold a property or are planning to, contact MCC Partners today. Our experienced team will ensure you meet the 60-day deadline, claim all available reliefs, and pay only the CGT you legally owe—no more, no less.