Many overseas owners are genuinely unaware of this separate reporting requirement. Unfortunately, missing the deadline can lead to penalties that increase the longer the return remains outstanding.

Does the 60-day rule apply to you?

The rule may apply if you are non-UK resident and have sold, gifted or otherwise transferred:

  • UK residential property
  • UK commercial property
  • Mixed-use property
  • UK land
  • Certain interests in entities deriving most of their value from UK land

The deadline begins on the completion date, when ownership legally transfers—not on the date contracts are exchanged.

The present 60-day deadline applies to relevant disposals completed on or after 27 October 2021. A 30-day deadline generally applied to relevant disposals completed between 6 April 2020 and 26 October 2021.

Why overseas owners miss the deadline

Many non-UK residents do not realise that selling UK property creates a separate and immediate reporting obligation.

An owner may have lived overseas for years, have little regular contact with the UK tax system and reasonably assume that the solicitor handling the conveyancing will also deal with the tax reporting. However, a conveyancing solicitor does not necessarily prepare or submit the owner’s CGT return.

The reporting system is also relatively recent. Non-resident CGT on UK residential property was introduced in 2015, the property reporting system changed in 2020, and the present 60-day deadline has applied since October 2021.

Common misunderstandings include:

  • “I live abroad, so I did not think UK CGT applied.”
  • “I made a loss, so I thought no return was required.”
  • “No tax was payable after reliefs.”
  • “My solicitor dealt with the sale, so I assumed everything was filed.”
  • “I planned to include the disposal in my Self Assessment return.”
  • “I calculated the deadline from the wrong date.”

Being unaware of the requirement does not remove the filing obligation. Non-residents generally have to report a UK property disposal even if no tax is due, a loss was made or they are already registered for Self Assessment.

What are the penalties for missing the deadline?

The late-filing penalties can increase in stages:

  • One day late: an initial fixed penalty of £100.
  • More than three months late: daily penalties of £10 may be charged for up to 90 days, potentially adding £900.
  • More than six months late: a further penalty of £300 or 5% of the tax liability, whichever is higher.
  • More than twelve months late: another penalty of £300 or 5% of the tax liability, whichever is higher.

Potential late-filing penalties could therefore reach £1,600 even where no CGT is payable, if the maximum daily penalties and minimum six- and twelve-month penalties are charged.

Higher penalties can apply where HMRC concludes that information was deliberately withheld. The actual penalty depends on the length of the delay, the tax liability and the circumstances surrounding the failure.

These are penalties for filing the return late. If CGT was also paid after the deadline, interest and separate late-payment consequences may arise.

Can the penalties be appealed?

A taxpayer may appeal a penalty if there was a reasonable excuse for the late filing. This means a genuine circumstance prevented the obligation from being met despite the person taking reasonable care.

Whether an excuse is reasonable depends on the individual facts. Simply saying that the rule was unknown may not, by itself, be enough. However, the person’s residence overseas, communications received, reliance on professional advice, health and other circumstances may form part of a wider explanation.

HMRC normally requires a penalty appeal within 30 days of the penalty decision. The appeal should explain what prevented timely filing, give the relevant dates and include supporting evidence where available.

What should you do if the deadline has passed?

Do not wait for HMRC to contact you. The position should be reviewed and corrected as soon as possible.

The main steps are:

  1. Confirm your UK residence status at the time of disposal.
  2. Establish the exchange and completion dates.
  3. Check whether the disposal was reportable.
  4. Calculate the gain or loss.
  5. Identify allowable costs, losses and reliefs.
  6. Submit the outstanding UK property return.
  7. Pay any CGT and interest due.
  8. Review any penalty notice and whether an appeal is available.

You may need the purchase and sale completion statements, legal costs, evidence of improvement expenditure and historic valuations.

Special calculation rules may apply depending on when the property was acquired, how it was used and whether it was previously your main residence.

How Fides can help

Fides Tax Consultants can review an overdue UK property disposal and help establish:

  • Whether a 60-day CGT return was required
  • The correct gain or loss
  • Available costs, losses and reliefs
  • The potential tax, interest and penalty exposure
  • Whether there may be grounds to appeal a penalty
  • The steps required to bring the reporting position up to date

Fides can also arrange for the relevant UK property CGT return to be prepared and filed with HMRC, together with the supporting tax calculation and any necessary explanation of the late submission.

Have you missed the 60-day CGT deadline?

Taking action now can prevent further delay and provide clarity over what must be reported and paid.

Request a UK Property CGT Review

Official sources

Disclaimer

This article provides general information only and does not constitute tax, legal, accounting or investment advice. The correct treatment depends on the owner, property, transaction and individual circumstances. Professional advice should be obtained before taking action.