A UK resident individual who makes a disposal of UK land on which a residential property gain accrues must report the disposal to HMRC and pay the capital gains tax (CGT) due within 60 days of completion. 

In a new initiative, HMRC will review the information it holds and write to the individual where it believes that a return under 60-day reporting is required. HMRC will do this before the 60-day deadline has elapsed. 

In the letter, HMRC identifies the property it believes has been sold and provides links to guidance that explain the circumstances in which a return must be made. If the individual believes that a return under 60-day reporting is not required, they are asked to contact HMRC using the details given in the letter. 

HMRC will charge interest on CGT paid late and may charge a penalty for the late submission of a return. 

HMRC has advised that only a limited number of taxpayers should expect to receive a letter. However, letters will be sent out on a regular basis as new transactions are identified. Therefore, it is important that individuals and their advisers should continue to ensure they are familiar with 60-day reporting. Individuals within self assessment also need to report the gain on the disposal of the property in their self assessment tax return. 

A similar 60-day reporting requirement applies to non-UK residents disposing of UK property. 

Further information

• Report and pay your capital gains tax: what you need to do - GOV.UK
• Paying tax outside self assessment | ICAEW
• TAXguide 15/20: CGT UK property disposal reporting | ICAEW (last updated April 2024)