The situation
A landlord accepted an offer on a rental flat he had owned for over a decade. He assumed any tax would simply be dealt with on his usual tax return, months later.
The problem
For UK residential property, capital gains tax must be reported and paid within 60 days of completion, through a dedicated account, separately from the annual return. Missing it brings penalties and interest. He also risked overpaying by not accounting for his purchase costs and improvements.
What we did
- Worked out the gain. We calculated it properly, deducting the original cost, buying and selling costs and qualifying improvements.
- Applied the reliefs. We used his annual exempt amount and any relief available.
- Filed within 60 days. We reported and paid on time through the UK Property Account, well inside the deadline.
What changed
The gain was reported and paid comfortably within the 60 day window, avoiding penalties, and the correct deductions kept the bill to the minimum properly due. He knew exactly what he owed well before completion.
What this shows
Selling a rental property triggers a tight 60 day deadline that catches many landlords out, and the reliefs and cost deductions make a real difference to the bill.
Selling a rental property?
We calculate the gain, claim every relief and cost, and file the 60 day return and payment on time, so a sale never becomes a penalty.