Capital Gains Tax on Property: 2026/27 Rates, Reliefs and the 60-Day Rule
Last updated 12 June 2026
In 2026/27, Capital Gains Tax on UK residential property is charged at 18% for gains that fall within your basic rate Income Tax band and 24% for gains above it. The first £3,000 of total gains each tax year is tax-free (the annual exempt amount). Your main home is usually fully exempt under Private Residence Relief, but if you sell a buy-to-let, second home or inherited property at a gain, you must report and pay the CGT to HMRC within 60 days of completion.
- CGT rates on residential property in 2026/27 are 18% (basic rate) and 24% (higher and additional rate) — the same rates that now apply to most other assets.
- The annual exempt amount is £3,000 per person (£1,500 for most trusts); only gains above this are taxed.
- Whether you pay 18% or 24% depends on your taxable income: the basic rate band is £37,700 for 2026/27, on top of the £12,570 Personal Allowance.
- Your only or main home is usually fully exempt under Private Residence Relief, and the final 9 months of ownership always qualify for relief.
- CGT on a UK residential property sale must be reported and paid within 60 days of completion using HMRC's Capital Gains Tax on UK property account.
- You can deduct buying, selling and improvement costs — estate agent and solicitor fees, Stamp Duty Land Tax paid on purchase, and capital improvements such as an extension.
- Non-UK residents must report every disposal of UK property within 60 days, even if no tax is due.
How much is Capital Gains Tax on property in 2026/27?
For the 2026/27 tax year, gains on UK residential property are taxed at 18% where they fall within your basic rate band and 24% where they exceed it. Higher and additional rate taxpayers pay 24% on the whole taxable gain. Since the rates on other assets were aligned with property rates, shares and residential property now share the same 18%/24% structure.
| Taxpayer position (2026/27) | CGT rate on residential property |
|---|---|
| Gain falls within the basic rate band (taxable income plus gains up to £37,700 above the Personal Allowance) | 18% |
| Gain (or part of it) above the basic rate band | 24% |
| Higher or additional rate taxpayer | 24% on all taxable gains |
| Trustees and personal representatives | 24% |
To work out which rate applies, add your taxable gain (after the annual exempt amount) to your taxable income. Any part of the gain that sits below the £37,700 basic rate band threshold is taxed at 18%; the rest is taxed at 24%. If you are unsure which Income Tax band you are in, see our guide to UK tax bands for 2026/27.
What is the CGT annual exempt amount for 2026/27?
The annual exempt amount — the tax-free allowance for capital gains — is £3,000 per person for 2026/27 (£1,500 for most trusts). You only pay CGT on your total gains above this figure in the tax year. The allowance cannot be carried forward: if you do not use it, you lose it. Couples who jointly own a property each have their own £3,000 allowance, so up to £6,000 of a joint gain can be tax-free.
When do you pay CGT on a property sale?
You normally pay CGT when you sell (or otherwise dispose of) a UK property that is not your main home and you make a gain above the annual exempt amount. Common examples include:
- a buy-to-let or other rental property
- a second home or holiday home
- an inherited property you later sell for more than its value at the date of death
- business premises or land
- a home you have let out, used exclusively for business, or that has very large grounds
"Disposing" of a property is wider than selling — gifting a property (other than to your spouse, civil partner or a charity) and transferring it into a trust can also trigger CGT, based on the property's market value.
Do you pay Capital Gains Tax when you sell your own home?
Usually not. Private Residence Relief (PRR) means you pay no CGT on the sale of your home if all of the following apply, according to gov.uk:
- you have one home and you have lived in it as your main home for the whole time you have owned it
- you have not let part of it out (taking in a single lodger does not count)
- no part of it has been used exclusively for business — a room used temporarily as an office is fine
- the grounds, including all buildings, are under 5,000 square metres (about an acre)
- you did not buy it just to make a gain
If any condition is not met, part of your gain may be taxable. Two rules soften this: the last 9 months of ownership always qualify for relief even if you had moved out, and this extends to 36 months if you are disabled or have moved into long-term residential care. Married couples and civil partners can only count one property between them as their main home at any one time, though they can nominate which one where they genuinely live in more than one.
What costs can you deduct from a property gain?
Your gain is the difference between what you paid for the property and what you sold it for, after deducting allowable costs. You can deduct:
- estate agent and solicitor fees on both purchase and sale
- Stamp Duty Land Tax paid when you bought the property
- the cost of capital improvements, such as an extension or loft conversion
You cannot deduct routine maintenance, redecorating or mortgage interest — those are revenue costs, not capital costs (mortgage interest is instead relieved against rental income while you let the property).
Worked example: CGT on a buy-to-let sale in 2026/27
Suppose you earn £42,570 from employment and sell a buy-to-let in 2026/27. Your taxable income is £30,000 after the £12,570 Personal Allowance, leaving £7,700 of your £37,700 basic rate band unused. The sale produces a gain of £23,000 after deducting purchase price and allowable costs.
| Step | Amount |
|---|---|
| Gain after allowable costs | £23,000 |
| Less annual exempt amount | −£3,000 |
| Taxable gain | £20,000 |
| £7,700 taxed at 18% (remaining basic rate band) | £1,386 |
| £12,300 taxed at 24% | £2,952 |
| Total CGT due | £4,338 |
The whole £4,338 must be reported and paid within 60 days of completion — not at the next Self Assessment deadline.
What is the 60-day rule for reporting property CGT?
If you sell a UK residential property and have CGT to pay, you must report the gain and pay the tax within 60 days of the completion date, using HMRC's online "Capital Gains Tax on UK property" account. Missing the deadline can mean penalties and interest on top of the tax. Key points:
- The 60 days run from completion, not exchange of contracts.
- Joint owners each submit their own report for their share of the gain.
- Non-UK residents must report every disposal of UK property or land within 60 days, even when no tax is due.
- If you file Self Assessment, you must also include the disposal on your tax return — the 60-day payment is treated as a payment on account of your final liability.
- UK residents with no tax to pay (for example, the gain is covered by the annual exempt amount or PRR) do not need to file a 60-day return.
Landlords should also note that rental income counts towards the Making Tax Digital qualifying income test — from 6 April 2026 you must follow MTD for Income Tax if your combined gross self-employment and property income is over £50,000. Check where you stand with our MTD qualifying income checker or read the Making Tax Digital guide. For estimating tax on your other income alongside a property sale, our UK tax calculators can help.
What are the Capital Gains Tax rates on property for 2026/27?
18% on gains within your basic rate band and 24% above it. Higher and additional rate taxpayers pay 24% on the whole taxable gain. The first £3,000 of gains per person is tax-free under the annual exempt amount.
How long do I have to pay Capital Gains Tax after selling a house?
60 days from the completion date. You report and pay using HMRC's Capital Gains Tax on UK property account. Late reporting or payment can trigger penalties and interest.
Do I pay CGT if I sell my main home?
Usually not — Private Residence Relief gives full exemption if you have lived in the property as your only or main home for your whole period of ownership, have not let part of it out or used part exclusively for business, and the grounds are under 5,000 square metres.
Is the last 9 months of ownership always tax-free?
Yes. If a property has been your main home at some point, the final 9 months of ownership always qualify for Private Residence Relief, even if you had moved out before selling. This extends to 36 months if you are disabled or in long-term residential care.
Do I pay CGT on an inherited property?
Not when you inherit it — but if you later sell it, CGT applies to the increase in value between the date of death and the sale, after the £3,000 annual exempt amount and allowable selling costs.
Can I deduct the annual exempt amount from each property I sell?
No. The £3,000 allowance applies to your total gains for the tax year across all assets, not per disposal. Each joint owner, however, has their own £3,000 allowance to set against their share of a gain.
Sources: Capital Gains Tax, Tax when you sell your home and Report and pay Capital Gains Tax (gov.uk), verified 12 June 2026. Estimates for information only — not regulated tax advice.