Capital Gains Tax on Property UK 2026/27
Use our free Capital Gains Tax Calculator to estimate your CGT bill on any property sale.
CGT rates on property in 2026/27
Capital gains tax on residential property uses different rates to other assets. For 2026/27:
| Taxpayer | Rate on residential property |
|---|---|
| Basic rate (income up to £50,270) | 18% |
| Higher rate (income over £50,270) | 24% |
| Additional rate (income over £125,140) | 24% |
Annual Exempt Amount: £3,000
Every individual has an Annual Exempt Amount (AEA) of £3,000 in 2026/27. You only pay CGT on gains above this threshold. If you make a gain of £50,000 on a property sale, you pay CGT on £47,000 (after the £3,000 exemption).
Private Residence Relief: your main home is exempt
If you sell your main home, you generally pay no CGT at all under Private Residence Relief (PRR). This applies if:
- The property has been your only or main residence throughout your ownership
- You have not let it out (other than under rent-a-room)
- You have not used it exclusively for business
- The garden does not exceed 0.5 hectares
CGT on buy-to-let and second homes
If you sell a buy-to-let or second home, PRR does not apply and CGT is due on the gain. The gain is calculated as: sale price − purchase price − allowable costs.
Allowable costs include:
- Solicitor and estate agent fees on purchase and sale
- Stamp duty paid on purchase
- Capital improvements (not repairs or maintenance)
You must report and pay CGT within 60 days of completion on UK residential property sales.
Worked example
You buy a buy-to-let flat for £200,000 in 2018 and sell it for £280,000 in 2026.
Purchase costs (stamp duty + solicitor): £7,500
Sale costs (estate agent + solicitor): £4,500
Total gain: £68,000 (£80,000 − £12,000 costs)
Less annual exempt amount: −£3,000
Taxable gain: £65,000
If you are a higher rate taxpayer: CGT = £65,000 × 24% = £15,600
Frequently asked questions
18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on residential property.
No — your main residence is exempt under Private Residence Relief. CGT only applies to second homes, buy-to-let, and properties that have not always been your main home.
£3,000 in 2026/27. You only pay CGT on gains above this threshold each tax year.
You must report and pay CGT within 60 days of completion on UK residential property sales. Use HMRC's online Capital Gains Tax service.