If you sell a UK residential property that is not your main home and there is tax to pay, you must report the sale and pay the tax within 60 days of completion.
Working out the gain
- Start with the sale price, less the purchase price
- Deduct buying and selling costs such as legal and estate agent fees
- Deduct the cost of improvements, but not repairs
- Deduct your annual exempt amount of £3,000
Rates
Gains on residential property are taxed at 18% within your basic rate band and 24% above it.
Reliefs to check
- Private residence relief for any period it was your home
- Lettings relief, where you shared occupation with a tenant
- Losses from other disposals
Missing the 60-day deadline brings penalties and interest. Contact us as soon as a sale is agreed.
We prepare and file 60-day returns as part of our Capital Gains Tax service. See also our services for landlords and property investors.