Quick answer
Selling a rental property isn’t reported through your MTD quarterly updates. Capital Gains Tax on UK residential property must be reported and paid within 60 days of completion. Your MTD updates carry on covering rent up to the sale, and stop if it was your last property.
Key facts
CGT on UK residential property: report and pay within 60 days of completion
2026/27 rates: 18% and 24%
Annual exempt amount: £3,000
The sale price isn’t rental income and doesn’t go in quarterly updates
Two separate things
Your MTD quarterly updates cover rental income and expenses. The gain on selling the property is Capital Gains Tax, which has its own online reporting service and deadline.
The 60-day rule
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale. UK residents don’t need to report if their total gains are under the tax-free allowance. Non-residents must report every sale, even with no tax due.
Rates for 2026/27
| Residential property |
|---|---|
Gains within the basic rate band | 18% |
Gains above the basic rate band | 24% |
Tax-free allowance | £3,000 |
Working out the gain
Broadly, the gain is the sale price minus what you paid, minus costs such as estate agent and solicitor fees and improvement works like an extension. Normal maintenance, such as decorating, can’t be deducted from the gain.
What happens to MTD
Record rent and expenses up to the sale date. If it was your only rental property and you have no self-employment income, your UK property business stops. Tell HMRC and send the remaining updates. See stopping a business under MTD.