Answers · UK 2025/26

How much capital gains tax on a £200,000 gain from a property sale in 2026/27?

The CGT on a £200,000 gain from a residential property sale in 2026/27 depends on your income. After the £3,000 Annual Exempt Amount, a higher-rate taxpayer pays 24% on £197,000 -- a CGT bill of £47,280. A basic-rate taxpayer whose gains push them into the higher band will pay a blended rate.

Last updated: 27 June 2026Last reviewed: 27 June 2026How we verify

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Capital Gains Tax (CGT) on UK residential property disposals is calculated after deducting the Annual Exempt Amount (AEA) and applying the relevant rate -- which depends on whether the gains fall in the basic-rate or higher-rate income tax band. **2026/27 CGT Rates -- Residential Property** - Basic-rate taxpayer (gains within basic-rate band): **18%** - Higher or additional-rate taxpayer: **24%** - Annual Exempt Amount (AEA): **£3,000** Note: The 18% and 24% rates apply to residential property. Non-residential assets use 18% (basic) and 24% (higher) from April 2024 -- the same rates, following the October 2024 Budget equalisation. **Scenario 1 -- Higher-rate taxpayer with a £200,000 gain** - Total gain: £200,000 - Less AEA: -£3,000 - Taxable gain: £197,000 - CGT at 24%: **£47,280** **Scenario 2 -- Basic-rate taxpayer (salary £30,000, all other income fills basic band)** Available basic-rate band remaining: £50,270 - £30,000 = £20,270 1. First £3,000: AEA -- exempt 2. Next £20,270 (fills remaining basic band): 18% = £3,649 3. Remaining gain: £200,000 - £3,000 - £20,270 = £176,730 at 24% = £42,415 4. **Total CGT: £46,064** **Scenario 3 -- Private Residence Relief (PRR)** If the property was your main home for any period, PRR reduces the gain proportionally. If it was your main home for the entire ownership period: **£0 CGT**. If 50% of the ownership period was your main residence and 50% was let: gain of £100,000 is exempt, CGT applies to £100,000 only. **Payment deadline** For UK residential property sold since 27 October 2021, CGT must be reported and paid within **60 days** of completion using HMRC's Real Time Transaction service. Failure to meet this deadline incurs penalties and interest. **Allowable deductions** You can reduce the gain by deducting: - Original purchase price - Stamp duty paid on purchase - Legal and estate agent fees on sale and purchase - Capital improvements (extensions, major renovations) -- not maintenance Use a capital gains tax calculator to model your exact liability.