Answers · UK 2025/26

How much Capital Gains Tax will I pay when I sell my buy-to-let?

Residential property gains are taxed at 18% within your basic-rate band and 24% above it, after the GBP 3,000 annual exempt amount. A GBP 60,000 gain for a higher-rate taxpayer means GBP 57,000 taxable at 24% = GBP 13,680.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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When you sell a buy-to-let or second home, Capital Gains Tax applies to the gain - the sale price minus what you paid, minus buying and selling costs (legal fees, estate agent, SDLT paid on purchase) and the cost of capital improvements (an extension, not routine repairs). The first GBP 3,000 of gains each tax year is exempt. Residential property is taxed at 18% on gains falling within your unused basic-rate band and 24% above it. Worked example: you bought for GBP 180,000, sell for GBP 245,000, with GBP 5,000 of allowable costs - gain GBP 60,000. Deduct the GBP 3,000 exemption = GBP 57,000 taxable. A higher-rate taxpayer pays 24% = GBP 13,680. A basic-rate taxpayer pays 18% only on the portion that fits in their remaining basic-rate band (taxable income plus the gain up to GBP 50,270), then 24% on the rest, so the bill is usually somewhere between the two. You can reduce the gain by jointly owning with a spouse to use two GBP 3,000 exemptions and potentially two basic-rate bands. If the property was ever your main home, Private Residence Relief may cover part of the gain. UK residential property CGT must be reported and paid within 60 days of completion using HMRC's online service - this is separate from your Self Assessment return. Use the capital gains tax calculator to estimate the bill. Confirm the 60-day rule and reliefs on gov.uk.