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Budget 2026 CGT update · UK residential property

Missed the 60-Day CGT Property Return? What Executors Should Know After Budget 2026

Budget 2026 proposes a limited change where a UK property disposal was reported late through Self Assessment. It does not abolish the original 60-day return, earlier penalties, unpaid tax or interest.

Published and last checked 30 October 2026 · 8-minute read

Do not wait for Self Assessment. Where a personal representative makes a chargeable gain on UK residential property, the estate is required to submit a UK property disposal return and make a Capital Gains Tax payment on account within 60 days of completion.

When can an estate have a Capital Gains Tax liability?

Capital Gains Tax is separate from Inheritance Tax. A property may have been valued when the owner died, but the estate can later make a chargeable gain if the personal representatives dispose of it for more than the relevant acquisition value after applicable costs, losses, reliefs and exemptions.

The Budget measure does not change how a gain is calculated. It concerns the late-filing penalty position where a required UK property disposal return was not submitted on time.

What is the 60-day UK property disposal return?

HMRC's Budget 2026 policy paper states that individuals, trustees and personal representatives making chargeable gains from UK residential property must report the disposal on a UK property disposal return and make a Capital Gains Tax payment on account within 60 days of completion.

The deadline runs from completion, not from exchange of contracts, receipt of the proceeds, completion of the estate accounts or submission of Self Assessment.

The property disposal return and Self Assessment are separate reporting mechanisms. Reporting the transaction later through Self Assessment does not mean that the original 60-day requirement never applied.

What did Budget 2026 change?

Budget 2026 and the Overview of Tax Legislation and Rates announce a change to the late-filing penalty regime. Where a person was required to submit a UK property disposal return but reports the residential property disposal on a later Self Assessment return:

  • the outstanding requirement to submit the separate UK property disposal return will end when the Self Assessment return is submitted; and
  • late-filing penalties for the missing property return will stop accumulating from that point.

The operative date applies where the disposal is reported on a Self Assessment return delivered on or after 28 October 2026.

What the change does not do

The measure is not an amnesty. It does not:

  • remove the original obligation to file within 60 days;
  • make Self Assessment the preferred replacement for an on-time property disposal return;
  • cancel late-filing penalties accumulated before Self Assessment was submitted;
  • cancel interest arising from late payment;
  • remove the underlying Capital Gains Tax liability; or
  • change how the estate's gain is calculated.

The official policy addresses continuing late-filing penalties. It does not announce a general waiver of earlier penalties, late-payment interest or tax due.

Is the change already final law?

Legislation is required. The OOTLAR says that the measure will be introduced through Finance Bill 2026–27. Executors should check the enacted legislation and current HMRC guidance before relying on the change.

What should an executor do after missing the deadline?

  1. Confirm whether a return was required. Establish whether the estate made a chargeable gain.
  2. Record the completion date. This determines the original 60-day deadline.
  3. Check what has been submitted. Identify whether a property disposal return, Self Assessment return or neither has been filed.
  4. Calculate the position carefully. Keep the estate valuation, completion statement and evidence of relevant costs.
  5. Do not wait deliberately for Self Assessment. The Budget change does not create an alternative on-time route.
  6. Address unpaid tax and interest. Stopping continuing late-filing penalties does not remove other consequences.
  7. Keep evidence. Retain submission confirmations, HMRC references, calculations and correspondence.
  8. Obtain advice where necessary. Particularly if the estate was distributed or several deadlines were missed.

Records personal representatives should retain

  • the date-of-death or probate valuation;
  • exchange and completion dates;
  • the sale completion statement;
  • relevant estate-agent, conveyancing and transaction costs;
  • evidence supporting qualifying improvement expenditure;
  • gain, loss, exemption and tax calculations;
  • property-return and Self Assessment confirmations; and
  • HMRC correspondence, penalty notices and payment records.

Frequently asked questions

Does Budget 2026 abolish the 60-day CGT property return?

No. The original obligation remains. The proposed change concerns when continuing late-filing penalties stop after a disposal is subsequently reported through Self Assessment.

Do earlier penalties disappear when Self Assessment is submitted?

No. The measure stops continuing late-filing penalties from accruing at that point; it does not announce cancellation of penalties already incurred.

Does the change cancel interest on unpaid CGT?

No. The measure described by HMRC addresses late-filing penalties and does not provide a general interest waiver.

Does every inherited-property sale require a 60-day return?

The Budget policy concerns cases where a required return was missed. Whether a particular estate must report depends on the disposal and whether a chargeable gain arises.

Official sources

This article provides general information based exclusively on Budget 2026, the OOTLAR and HMRC's published policy documents, checked on 30 October 2026. The measure requires legislation in Finance Bill 2026–27 and may change during the parliamentary process. This is not legal, tax or financial advice. Executors and administrators should check current HMRC guidance and obtain advice appropriate to the estate.