Disposals of UK residential property by UK residents

UK Residents who sell UK residential property may need to submit a tax return and pay the associated tax due on the disposal of UK residential property within 60 days of completion.

Since 6 April 2020 a UK resident taxpayer with a CGT liability is required to report and pay capital gains tax due on disposals made. Initially the returns and tax were due within 30 days of completion, from 27 October 2021 this deadline was extended to 60 days after completion. If you have made a chargeable gain you will need to submit a CGT return by the due date, even if you intend to include this on a self-assessment tax return at a later date.  If you do not report and pay on time, interest and penalties will be due. If your property was jointly owned, you will need to report your own gain or loss.

To work out your gain

Capital Gains tax is due on any profits you make when you sell an asset, e.g. if you bought a property for £200,000 and sold it for £250,000, you’ve made a gain of £50,000 on the property you will pay capital gains on this amount, less any deductions available to you.

Allowable Expenditure

When calculating the taxable gain on your property you can deduct certain other costs. These include stamp duty, estate agent costs, solicitors’ fees, along with improvement costs, e.g. an extension or conservatory. You cannot deduct expenses related to the general upkeep of the property or any amounts relating to the mortgage on the property.

Tax Reliefs

You may also be eligible to claim various tax reliefs the most common for residential property is Principle Private Residence (PPR) Relief. If the property you are selling is your main residence, it will be exempt from CGT due PPR relief. To qualify as your main residence all of the following must apply:

• You have one home and you’ve lived in it as your main home for all the time you’ve owned it
• You have not let part of it out (not including having a lodger)
• You have not used a part of your home exclusively for business purposes
• The grounds, including all buildings, occupy less than 5,000 square metres
• You did not buy it just to make a gain

If all of the above apply, you will qualify for principle private residence relief and you will not have to pay any CGT on the disposal. However, if one or more of the above conditions applied then you may have some CGT to pay. Please get in touch and we can help you determine your CGT liability.

Losses

If you have made losses on previous capital disposals these can also be set against the remaining gain.

Each year a taxpayer has an annual exempt amount to be used against any capital gains made during the year. In the current year, 2025/26, the exemption is £3,000.

Calculating your CGT liability

Once you have calculated your taxable gain, you will then need to calculate your CGT liability. To complete this you will need to estimate your other taxable income for the year to ascertain how much of your basic rate band is remaining. If the gain is within your basic rate band this will be charged at 18%. If you are a higher or additional rate taxpayer this will be charged at 24%.

Report and pay online

To complete the CGT return, you will need to use the Capital Gains Tax on UK property account. This is a standalone account and does not link directly to your self-assessment account. From this account you can complete your CGT return, appoint an agent to complete the CGT return on your behalf, and pay your CGT liability.

Please note that separate rules apply to non-UK residents.

If you have sold  UK residential property, please get in touch and we will give you a quote to complete your CGT Return.