Kirk Rice Blog

Capital Gains Tax On UK Property And LandWritten on September 10, 2025 by Kirk Rice LLP

The Question:

I have just sold my UK rental property. I believe I have made a capital gain on the sale and need to know what is required of me for tax purposes. Is there anything I need to do?

Kirk Rice LLP answers:

Capital Gains Tax 60-Day Reporting Explained

Yes, there is, and quickly! Anyone who sells, gifts or otherwise transfers UK residential property or land on which a capital gain arises is required to report that gain to HMRC within 60 days from the date of completion, and pay the capital gains tax liability arising by the same deadline.

These rules (with some minor variation) also apply to non-UK residents (see further below), trustees of trusts selling UK land and property, and the personal representatives/executors of estates.

The report is done via a ‘Capital Gains Tax on UK Property’ account, which the owner (seller) of the property must set up with HMRC.

In summary, the capital gain should be computed using the current CGT rules and the tax estimated before an account is set up with HMRC and a report of the disposal and resulting tax filed with HMRC. The tax is then paid using the payment reference number provided by HMRC.

Why CGT Calculations and Reporting Are Complicated

Whilst this sounds straightforward, computing the capital gain can be complicated due to the available reliefs and apportionments between chargeable and non-chargeable periods of ownership, and the reporting process can be somewhat involved.

We at Kirk Rice LLP can undertake all aspects of the computational and reporting work for you. Still, in doing so, you should be aware that a digital handshake will be required between you and our firm to enable us to access your Capital Gains Tax on the UK Property account. This requires your involvement in the initial setup of the account.

Penalties for Late Capital Gains Tax Reporting

Where a disposal is reported to HMRC after the 60-day filing deadline, a penalty will be levied, and interest will be applied to the late payment of tax. It is, therefore, imperative that you act quickly.

Additional Rules for Non-UK Residents

For non-UK residents selling UK land or property, the requirement to report a disposal covers all direct and indirect disposals, whether or not a capital gain or loss arises. The overseas owner of the property will need to set up a Capital Gains Tax on Property account with HMRC and verify their identity in the course of setting up the account.

A word about the digitally excluded amongst us: for those property owners who, due to their disability, age, location or religious belief, cannot use online services, there is the option to file a paper report with HMRC. They, or their appointed helper, will need to contact the HMRC helpline on 0300 200 3300 and ask for a paper form PPDCGT. This form will only be granted to someone falling in the digitally excluded category. Those who are digitally challenged will still be expected to file an online report with the help of a family member, friend or tax adviser/accountant.

Amending a Capital Gains Tax Report

Finally, because of the way capital gains tax is currently calculated, it may not be possible to definitively work out the final tax position at the time of sale of the property. Where best estimates are used, HMRC will expect the report as filed to be amended at a later date. This can be done when filing your self-assessment tax return. Alternatively, an amendment can be filed using the capital gains tax UK property disposal service if you are not required to file a self-assessment tax return. An amendment can be filed up to 12 months after the self-assessment filing date of the year you sold the property. For example, as you sold the property in the current tax year (2025/26), you can file an amendment by 31 January 2028.

If you’re interested in discussing capital gains tax on property sales please get in touch via info@kirkrice.co.uk to arrange a call with one of our tax specialists.

Please note: This article is correct at the time of publication and subsequent changes in law and regulations may not be reflected.  Answers are given for general guidance only and you should take specific advice before acting on any of the suggestions made.