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Thinking of selling your rental property? Do you know the Capital Gains Tax implications and reporting responsibilities to HMRC?

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Selling a property can be a very time consuming. If the property is not your primary residence there are extra reporting responsibilities and Capital Gains Tax implications you should be aware of before putting your property on the market. This article covers everything you need to know the about the tax implications and reporting responsibilities associated with selling a 2nd rental property.

What do I need to report if I dispose of a 2nd property?

If you have disposed of a residential property (or properties) that you have received rental income from, you may need to report it as a CGT disposal within 60 days to HMRC. As this isn’t a very large window of opportunity to report, it is important you understand where and how to report well in advanced.

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home, for example:

  • buy-to-let properties
  • business premises
  • land
  • inherited property

How do I report?

You can report your property sale directly on the GOV.UK website, alternatively you can enlist the help of a professional for example, an accountant to help ensure you report the gain in the correct way.

It is also worth noting You may also need to report this disposal on the relevant Self Assessment (SA) return.

When you do not pay

You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.

You may get tax relief if the property is a business asset.

If the property was occupied by a dependent relative you may not have to pay.

There are different rules if you:

  • sell your home
  • live abroad
  • are a company registered abroad

You’ll need to work out your gain to find out whether you need to pay tax.


Are you selling a property and require assistance with Capital Gains Tax? Our tax team are on hand to help if you have any queries regarding information in this article. If you want to discuss further, please give us a call or e-mail us at for a FREE no obligation consultation.

Our friendly team of tax specialists are happy to help. Just drop us a line!

Call us on 0121 753 5522 or 01902 759 800. We look forward to hearing from you!

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