CGT tax returns Disposals Falling Outside the Scope of the 60-Day Capital Gains Tax (CGT) Return
An In-depth Guide to Exclusions and Exceptions
Introduction
The 60-day Capital Gains Tax (CGT) return is an important requirement for individuals and trustees who dispose of UK residential property and realise a taxable gain. However, not all disposals are subject to this rule. Understanding which types of disposals fall outside the scope of the 60-day CGT return is essential for accurate tax compliance. This guide explores the various disposals that do not require a 60-day CGT return, providing clarity for property owners, investors, and advisors. Do need help in the CGT area? Our experienced Accountant in Hackney can support you with our professional services. Get in touch for more.
Overview of the 60-Day CGT Return Requirement
Since 6 April 2020, UK residents (and since 6 April 2019 for non-residents) disposing of UK residential property and realising a gain on which tax is due are required to report the disposal and pay any CGT within 60 days of completion. The rule aims to accelerate the reporting and payment of CGT on property transactions, but there are clear exceptions and exclusions.
Disposals That Fall Outside the Scope of the 60-Day CGT Return
- Disposals Where No Tax Is Payable
If, after applying all relevant exemptions, reliefs, and allowable costs, there is no CGT to pay on the disposal, a 60-day return is not required. Common examples include:
• The gain is fully covered by the Annual Exempt Amount (AEA).
• Private Residence Relief covers the full gain.
• Other reliefs (e.g., lettings relief, spouse or civil partner transfers) reduce the gain to nil. - Disposals of Non-Residential Property or Land
The 60-day CGT return rules apply only to disposals of UK residential property or land. Disposals exclusively of commercial or non-residential property, such as:
• Shops, offices, factories, or warehouses
• Agricultural land with no residential component
• Forestry or woodland property
do not require a 60-day return. - Disposals by Companies
Companies are subject to Corporation Tax rather than CGT and report disposals through their company tax returns. The 60-day CGT return rule applies only to individuals, trustees, and personal representatives, not to companies or other entities. - Disposals Involving Non-UK Residential Property
The 60-day rule applies only to UK land and property. Disposals of properties located outside the UK are not within the scope of the UK’s 60-day CGT return. - Disposals Reported in Self Assessment (in Specific Circumstances)
Although the 60-day return is required even if the disposal will be reported on a Self Assessment tax return, there are specific situations (mainly for non-residents) where reporting through Self Assessment alone may suffice, particularly where there is no tax due or the disposal is of assets other than UK land or property. - Disposals of Assets Other Than Land or Property
The 60-day rule is focused solely on UK residential property and land. Other chargeable assets, such as:
• Shares and securities
• Personal possessions (chattels)
• Business assets (unless involving UK residential property)
do not require a 60-day return when disposed of. - Transfers Between Spouses or Civil Partners
Transfers of assets between spouses or civil partners who are living together are generally not subject to CGT. These transactions are considered “no gain/no loss” for tax purposes and do not trigger a 60-day return requirement. - Disposals Made by Charities
Charities are generally exempt from CGT on the sale or disposal of property provided the gains are used for charitable purposes. As such, charities do not need to file a 60-day return for such disposals. - Gifts to Charity
If property is donated to a registered charity, the disposal is generally exempt from CGT and falls outside the 60-day return scope. - Disposals Subject to Other Exemptions
Other specific exemptions, such as gains realised by certain pension schemes, government departments, or local authorities, will fall outside the requirement.
Key Practical Examples
- Private Residence Sale: A homeowner sells their only residence, which has always been their main home. The gain is fully covered by Private Residence Relief — no 60-day CGT return is needed.
- Commercial Property Disposal: An individual sells a warehouse used for business purposes — no 60-day CGT return required.
If you need assistance working out CGT or need any professional accounting assistance, our experienced Accountant in Hackney can support you with our professional services. Get in touch for more.