Have you sold a property that was not your main home? If so, you may need to report and pay online within 60 days of your completion date.
What is a disposal in CGT?
When we talk about Capital Gains Tax (CGT), one of the key terms to understand is “disposal”. The term “disposal” might sound technical, but it simply refers to the point when you part with an asset, whether that’s selling it, gifting it, swapping it, or even receiving compensation for it. A disposal is what triggers CGT, so it’s an important moment from a tax perspective. You don’t have to make a profit in your bank account for it to count; even giving something away for free can be classed as a disposal if its value has changed since you first acquired it.
When do I have to file a CGT Property Return?
For UK residential property, the rules are a bit stricter than for other types of assets. If you dispose of a property which has not been your main home for the entire period of ownership (such as a buy-to-let, second home, or inherited property) a tax calculation should be prepared. If tax is due, or you are non-UK resident, a CGT Property Return needs to be filed within 60 days of your completion date. Tax needs to be paid within the same timeframe. These rules also apply to joint owners and Personal Representatives (Executors of Estates).
Not every disposal results in a tax bill. There are various reliefs and exemptions that could reduce or eliminate your CGT liability. For example, transfers between spouses or civil partners are usually tax-free. But knowing what counts as a disposal is essential for keeping your tax affairs in order. If you’re planning to sell or gift an asset, it’s worth speaking to your accountant early so you can make the most of any available tax planning opportunities.
What if I don’t do this?
Missing this deadline can lead to penalties and interest, so it’s really important to plan ahead.
HM Revenue and Customs (HMRC) have global access to information. This means they will be notified whether you report or not. There are penalties for failing to report and further penalties for failing to pay on time.
What do I need to do now?
The good news is there are various reliefs and allowances that could help reduce your CGT bill, including Private Residence Relief, which may apply to your main home, and your annual CGT exemption (known as the annual exempt amount). Additionally, you do not need to wait until you have an exchange or completion date. Our expert Tax team, know the ins and out of CGT and can help you navigate these rules, calculate any tax due, and make sure everything is reported correctly and on time to avoid penalties. Talk to us as early as possible in the process of selling your property so we can ensure you have everything in order.
Why Gravita?
At Gravita, we offer expert support with Capital Gains Tax on UK property, giving you peace of mind in an increasingly complex tax landscape. With tighter reporting deadlines, rising penalties, and more HMRC investigations, it’s never been more important to get it right. Our team specialises in high-quality, reliable work tailored to your unique circumstances, whether you’re selling a second home, gifting property, or managing a portfolio. We take the time to understand your goals so we can optimise your tax position, mitigate risk, and maximise available reliefs. From clear, practical advice and detailed reporting to ongoing support and easy onboarding, Gravita makes the CGT process smooth, efficient, and fully compliant, so you can move forward with confidence.
How we can help
Charlene Griffith is a Tax Director at Gravita, with substantial experience advising CGT and tax clients on reporting deadlines and HMRC penalties. If you’re looking to understand how these deadlines might impact you or you business, or need support with strategic planning in the current market environment, please get in touch.
