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Taxation (UK) · The scope of the taxation of capital gains

Capital Gains Tax Payment, Reporting and Examinable Documents

Updated 11 October 2026 · Fact-checked

Capital gains tax for an individual is normally due on 31 January after the end of the tax year of disposal, and reported on the self-assessment return. For a UK residential property disposal, you must report and pay within 60 days of completion. TX-UK examines the Finance Act 2025 for June 2026 to June 2027.

Understand Capital Gains Tax Payment, Reporting and Examinable Documents

Capital gains tax (CGT) is charged on an individual's chargeable gains in a tax year. A tax year runs from 6 April to 5 April. The gain is taxed in the year of disposal, not the year you receive the cash.

There are two timing rules to learn. For most disposals, such as shares or non-residential property, the tax is due on 31 January following the end of the tax year. You report the gain on your self-assessment return, which has the same filing date for online returns. A disposal in 2025-26 is therefore due on 31 January 2027.

For disposals of UK residential property where tax is payable, you must also report the disposal and pay an estimate of the CGT within 60 days of completion. This is a separate, earlier deadline. The gain must still appear on the self-assessment return later. If the gain is covered by the annual exempt amount, losses or full private residence relief, there is no tax to pay and the 60-day rule does not bite.

The tax itself uses the rates in your exam tax tables: 18% lower rate, 24% higher rate and an annual exempt amount of £3,000. The lower rate applies to the extent that gains fall within any unused basic rate band. Business asset disposal relief and investors' relief gains are taxed at 14% up to a £1,000,000 lifetime limit.

The examinable documents tell you which law is tested. For exams from June 2026 to March 2027 and in June 2027, TX-UK examines the Finance Act 2025, which received Royal Assent on 20 March 2025. The relevant Student Accountant articles for this chapter include Chargeable gains (Parts 1 and 2), updated each year for the Finance Act, plus Objective test questions and Examiner's approach to TX-UK. Legislation that has not yet taken effect is not normally examined.

Key rules to remember

Normal CGT due date
31 January following the end of the tax year of disposal
Applies to shares, non-residential property and most other assets. Disposal in 2025-26 gives 31 January 2027.
UK residential property deadline
Report and pay within 60 days of completion
Applies where CGT is payable. Count from completion, not exchange of contracts.
CGT rates
Lower rate 18%; higher rate 24%
Lower rate applies to gains within the unused basic rate band after taxable income.
Annual exempt amount
£3,000
Deduct from net gains before applying the rates.
BADR and investors' relief
14% on qualifying gains, lifetime limit £1,000,000 each
These rates and limits appear in the exam tax tables.
Finance Act examined
Finance Act 2025 for June 2026 to March 2027 and June 2027
Royal Assent 20 March 2025.
Supplementary instructions
Round to nearest £; apportion to nearest month; show all workings in Section C
These are printed in the exam.

How to solve Capital Gains Tax Payment, Reporting and Examinable Documents questions

Use this method for any question on when CGT is due or reported.

  1. 1Identify the date of disposal and the tax year it falls in (6 April to 5 April).
  2. 2Decide what was disposed of. Is it UK residential property or something else?
  3. 3For UK residential property, find the completion date and add 60 days. State that the disposal must be reported and any CGT paid by then.
  4. 4Check whether any CGT is actually payable. If the gain is wiped out by losses, the annual exempt amount or full private residence relief, there is no payment.
  5. 5For all other disposals, state 31 January after the end of the tax year. Add that the gain goes on the self-assessment return.
  6. 6If you are asked for the tax, compute the gain, deduct losses and the £3,000 annual exempt amount, then apply 18% and 24% using the unused basic rate band.
  7. 7Round to the nearest £ and show workings clearly.

Quickest way: Two-question date test

When to use it: Use in Section A and Section B objective test questions that ask for a due date.

  1. Ask: is it UK residential property? If yes, the answer is completion date plus 60 days.
  2. If no, the answer is 31 January after the tax year ends.
  3. Find the tax year first. A disposal on or before 5 April belongs to the year ending that April.

Common mistakes in Capital Gains Tax Payment, Reporting and Examinable Documents

  • Using 31 January for a residential property sale when tax is payable.

    Students remember the self-assessment date and forget the separate 60-day rule.

    Fix: Always check the asset type first. UK residential property with tax payable means the 60-day deadline.

  • Counting the 60 days from exchange of contracts.

    The date of disposal for gain purposes can differ from completion.

    Fix: For the 60-day deadline, count from completion.

  • Applying the 60-day rule to shares or commercial property.

    Students over-generalise the property rule.

    Fix: The 60-day rule is only for UK residential property. Other assets use 31 January.

  • Getting the wrong 31 January.

    Students use the calendar year of the sale instead of the tax year end.

    Fix: Find the tax year end first, then take the following 31 January. A sale in June 2025 gives 31 January 2027.

  • Stating that the Finance Act 2024 or a later Act is examined.

    Students mix up exam sessions.

    Fix: For June 2026 to March 2027 and June 2027, the examined Act is the Finance Act 2025.

  • Forgetting the annual exempt amount or applying 24% to the whole gain.

    Rushing the computation.

    Fix: Deduct £3,000 first, then fill the unused basic rate band at 18% and tax the rest at 24%.

Worked examples

Example 1

Priya sold a UK residential property that is not her main home. Completion was on 10 August 2025. Her gain was £53,000 before the annual exempt amount. Her taxable income for 2025-26 is £30,000. The basic rate band is £37,700. Calculate her CGT and state when it must be reported and paid.

Show the solution
  1. Gain £53,000 less annual exempt amount £3,000 = taxable gain £50,000.
  2. Unused basic rate band = £37,700 less £30,000 = £7,700.
  3. £7,700 at 18% = £1,386.
  4. Remaining gain £50,000 less £7,700 = £42,300 at 24% = £10,152.
  5. Total CGT = £1,386 + £10,152 = £11,538.
  6. Deadline: 60 days from 10 August 2025. 21 days to 31 August, 30 more to 30 September makes 51, and 9 more gives 9 October 2025.

Answer: CGT is £11,538. It must be reported and paid by 9 October 2025, and the gain also goes on the 2025-26 self-assessment return.

Example 2

Omar, a higher rate taxpayer, sold quoted shares on 15 June 2025 and made a gain of £20,000. He has no other disposals in 2025-26. Calculate his CGT and state the due date.

Show the solution
  1. Gain £20,000 less annual exempt amount £3,000 = £17,000.
  2. He is a higher rate taxpayer, so the whole gain is taxed at 24%.
  3. £17,000 × 24% = £4,080.
  4. Shares are not UK residential property, so the 60-day rule does not apply.
  5. The tax year 2025-26 ends on 5 April 2026, so the due date is 31 January 2027.

Answer: CGT is £4,080, due on 31 January 2027 and reported on his self-assessment return.

Exam tips

  • Before you write a date, say what asset was sold. The asset decides between the 60-day rule and 31 January.
  • In objective tests, the options often include both dates. Pick based on the asset, then check the tax year.
  • Know which Act is examined: Finance Act 2025 for June 2026 to March 2027 and June 2027. Use the tax rates provided in the exam.
  • In Section C, show every working, round to the nearest £ and state the due date in a clear final line.
  • Read the Student Accountant articles on chargeable gains and objective test questions to see how examiners phrase these points.

Practice questions from The scope of the taxation of capital gains

Capital Gains Tax Payment, Reporting and Examinable Documents in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Capital Gains Tax Payment, Reporting and Examinable Documents: frequently asked questions

When is capital gains tax due on a UK residential property in TX-UK?

Where CGT is payable, you must report the disposal and pay within 60 days of completion. The gain is also included in the self-assessment return. If there is no tax to pay, there is no payment due under the 60-day rule.

When is CGT due on shares?

It is due on 31 January following the end of the tax year of disposal. For a sale in 2025-26, that is 31 January 2027. You report the gain on the self-assessment return.

Which Finance Act does TX-UK examine from June 2026 to June 2027?

The Finance Act 2025, which received Royal Assent on 20 March 2025. This applies to exams from June 2026 to March 2027 and in June 2027. Legislation not yet in effect is not normally examined.

Which Student Accountant articles help with CGT?

ACCA lists Chargeable gains (Parts 1 and 2), updated each year for the Finance Act. Other useful articles are Objective test questions, Examiner's approach to TX-UK and Finance Act 2025.

Do I need to show workings in the exam?

Yes, in Section C all workings must be shown. Calculations need only be to the nearest £, and apportionments are made to the nearest month.