Answers · UK 2025/26
How much Capital Gains Tax do I pay when selling a buy-to-let property with a £50,000 gain?
On a £50,000 gain from selling a buy-to-let property in 2026/27, after the £3,000 annual exempt amount, £47,000 is taxable. A basic rate taxpayer pays 18% (£8,460); a higher or additional rate taxpayer pays 24% (£11,280).
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Residential property that is not your main home -- such as a buy-to-let, second home or inherited property -- is subject to the residential rates of Capital Gains Tax, which are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on gains above the £3,000 annual exempt amount for 2026/27. On a £50,000 gain from selling a buy-to-let, the first £3,000 is tax-free, leaving £47,000 as the taxable gain. If your other taxable income for the year, combined with the gain, keeps you within the basic rate band, 18% applies to the whole gain, giving £8,460. If the gain (added on top of your other income) pushes you into the higher rate band, the portion above the basic rate threshold is taxed at 24% instead -- for many landlords selling a property with a substantial gain, most or all of the gain ends up taxed at 24%, since gains are treated as the top slice of income when working out which rate applies. Unlike most other Capital Gains Tax disposals, sales of UK residential property must be reported to HMRC and any tax paid within 60 days of completion, using the separate UK Property Account online service, rather than waiting until the normal Self Assessment deadline -- missing this 60-day window can trigger penalties and interest even if the tax itself is eventually paid correctly through Self Assessment.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.