Paying Your CGT Bill

Once you’ve calculated and reported your capital gain, you need to pay the tax — this guide covers every payment method, the correct references to use, and what to do if you can’t pay on time.

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Key facts

  • CGT on UK residential property must be paid within 60 days of the completion date.
  • CGT on all other assets is paid by 31 January after the end of the tax year.
  • The fastest payment methods are online banking (Faster Payments) and CHAPS — typically same or next working day.
  • You need HMRC’s CGT payment reference to ensure your payment is correctly allocated.
  • If you cannot pay on time, you can apply for a Time to Pay arrangement with HMRC.

When CGT Must Be Paid

The payment deadline depends on the type of asset disposed of:[1]

Type of DisposalPayment Deadline
UK residential property60 days from the completion date (paid when filing the 60-day return)
Shares, investments, crypto, and other assets31 January after the end of the tax year (e.g. 31 January 2027 for gains in 2025/26)
Non-UK resident: all UK property disposals60 days from the completion date

Two different deadlines: If you sell a rental property in September 2025, you must pay the CGT within 60 days. But if you sell shares in September 2025, the CGT is not due until 31 January 2027. These are fundamentally different timelines, so make sure you know which applies to your disposal.[2]

Payment Methods

HMRC accepts several methods for paying CGT. The table below shows the key options and typical processing times:[1]

MethodProcessing TimeNotes
Online banking (Faster Payments)Same or next working dayAvailable 24/7. Use HMRC’s bank details and your payment reference.
CHAPSSame working day (before cut-off)Contact your bank for their cut-off time. Fee may apply.
Bacs3 working daysFree but slower. Allow extra time before the deadline.
Debit card (online)ImmediatePay via HMRC’s online service. Personal debit cards only — no credit cards.
Direct Debit3 – 5 working daysMust be set up in advance through your HMRC online account.
At your bank or building societySame day (in branch)Take your payslip from HMRC (if applicable) and your payment reference.
Cheque by postAllow at least 5 working daysMake payable to “HM Revenue and Customs only”. Include your payment reference.

Tip: Online banking via Faster Payments is the safest option for meeting tight deadlines. CHAPS is fastest but may incur a bank fee (typically £20 – £30). Avoid cheques for 60-day property returns as the processing time may cause you to miss the deadline.

Getting the Right Payment Reference

Using the correct payment reference is essential — without it, HMRC may not be able to allocate your payment correctly.

60-Day Property Return Payments

When you submit the 60-day return online, HMRC provides a unique payment reference on screen. Note this down carefully. The reference will also appear in your CGT on UK property account.[2]

Self Assessment CGT Payments

For CGT paid through Self Assessment (by 31 January), your payment reference is based on your 10-digit Unique Taxpayer Reference (UTR). You can find this in your HMRC online account under Self Assessment. If you are making a balancing payment, your Self Assessment statement will show the reference and amount due.[1]

HMRC Bank Details for CGT Payments

For online or telephone banking payments, you need HMRC’s bank details:[1]

DetailInformation
Sort code08 32 10
Account number12001039
Account nameHMRC Cumbernauld

Always include your payment reference in the “reference” field of the bank transfer to ensure correct allocation.

Payments on Account

If you pay CGT through Self Assessment (for non-property gains), you may also be subject to payments on account. These are advance payments towards next year’s tax bill, based on the current year’s liability. Payments on account are due:

  • 31 January during the tax year (first payment on account)
  • 31 July after the end of the tax year (second payment on account)

However, CGT is not included in payments on account calculations. Payments on account are based on your Income Tax and Class 4 NIC liability only. CGT is paid as a single balancing payment on 31 January after the tax year ends.

What If You Cannot Pay on Time?

If you are struggling to pay your CGT bill by the deadline, you have options:[3]

Time to Pay Arrangement

You can contact HMRC to request a Time to Pay (TTP) arrangement. This is an agreement to pay the debt in instalments over an agreed period. Key points:

  • Contact HMRC as soon as possible — ideally before the payment deadline
  • You can set up a payment plan online through your Government Gateway account if the debt is under £30,000
  • For larger debts, call HMRC’s Payment Support Service on 0300 200 3835
  • HMRC will consider your circumstances, including your income, expenditure, and other debts
  • Interest continues to accrue on the outstanding balance throughout the arrangement
  • Late payment penalties may be avoided if the TTP is agreed before the penalty trigger dates

Late Payment Consequences

If you do not pay on time and do not agree a TTP arrangement:

ConsequenceWhen It Applies
Late payment interestFrom the day after the due date, at Bank of England base rate + 2.5%
5% surchargeIf tax is unpaid 30 days after the due date
Further 5% surchargeIf tax is still unpaid 6 months after the due date
Additional 5% surchargeIf tax is still unpaid 12 months after the due date

Worked Example: Paying CGT on a Property Sale

James sells a buy-to-let property on 15 June 2025 for £350,000 and makes a chargeable gain of £50,000 after costs and reliefs. He is a higher-rate taxpayer.

StepDetailAmount
Chargeable gainAfter allowable costs and reliefs£50,000
Less Annual Exempt Amount2025/26 AEA−£3,000
Taxable gain£47,000
CGT at 24%£47,000 × 24%£11,280
Payment deadline60 days from 15 June 202514 August 2025

James files the 60-day return online and pays £11,280 by Faster Payments on 10 August 2025. He must also include the gain on his 2025/26 Self Assessment return (due 31 January 2027), claiming credit for the £11,280 already paid.[4]

Frequently Asked Questions

How do I pay my Capital Gains Tax bill?

The most common methods are online banking (Faster Payments), CHAPS bank transfer, or debit card via HMRC’s online service. You can also pay by Direct Debit (if set up), at your bank or building society, or by cheque through the post. Each method requires your HMRC CGT payment reference.

What payment reference do I use for CGT?

For the 60-day property return, the payment reference is provided when you submit the return online. For Self Assessment CGT, use your 10-digit Unique Taxpayer Reference (UTR) followed by “K” for the relevant tax year. Check your HMRC online account for the exact reference.

What happens if I pay my CGT late?

Interest is charged on late payments from the due date at the Bank of England base rate plus 2.5%. For the 60-day property return, late payment penalties may also apply: 5% of unpaid tax at 30 days, a further 5% at 6 months, and another 5% at 12 months late.

Can I pay my CGT bill in instalments?

HMRC does not automatically allow instalments, but if you are struggling to pay you can contact HMRC to request a Time to Pay arrangement. This is an agreement to pay the debt over a period of time, typically up to 12 months. Interest continues to accrue, but penalties may be avoided.

Further Reading

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Sources

  1. Pay your Capital Gains Tax bill — GOV.UK
  2. Report and pay Capital Gains Tax on UK property — GOV.UK
  3. If you cannot pay your tax bill on time — GOV.UK
  4. HMRC interest rates for late and early payments — GOV.UK

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