60-day capital gains tax reporting

Our regular Q’s and A’s

 

A client has sold a plot of land on 1 September 2025 and made a capital gain. The plot was acquired in 2001 and used to have a house until 2020, where it was demolished in 2020, prior to being sold. As the bare land used to have a dwelling, how is the gain reported?

 The rules depend on whether or not the taxpayer is UK resident. A non-resident must disclose all disposals of UK land and property under the 60-day capital gains tax (CGT) reporting regime of Sch. 2 Finance Act 2019 (FA 2019)whether a gain or a loss arises. A UK resident only has to make a 60-day CGT reporting return if a CGT liability arises on a UK residential property gain.

Therefore, our client is non-resident all of the gain will need to be reported under the 60-day CGT reporting regime.

 

If our client is UK resident, a 60-day return will only be made for the residential property gain if there is a CGT liability.

All of the gain, including the non-residential part of the gain will usually be disclosed under self-assessment and credit claimed for the CGT paid under the 60-day reporting regime.

A residential property gain is one that arises from a disposal of land that does, or used to, include a dwelling at any time in the vendor’s ownership – para 16C Sch. 2 FA 2019.

Para 16B, Sch 2, FA 2019 states that the residential part of the gain is determined by time apportionment being the number of days in the vendor’s ownership period that the land included a dwelling.

Therefore, the gain on land acquired was considered as a residential property gain up until 2020, when the property was demolished but a non-residential gain after that date.

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