Answers · UK 2025/26
How much capital gains tax do I pay on a property sale in 2026/27?
CGT on residential property in 2026/27: 18% for basic-rate taxpayers, 24% for higher/additional-rate taxpayers. The Annual Exempt Amount is £3,000. Example: a £50,000 gain minus £3,000 AEA = £47,000 taxable, giving £11,280 CGT at 24%. Report and pay within 60 days of completion.
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UK Capital Gains Tax on a residential property sale 2026/27. Step 1 — calculate the gain: sale proceeds minus (original purchase price + acquisition costs + capital improvements + selling costs). Step 2 — deduct the Annual Exempt Amount (AEA) of £3,000. Step 3 — determine the CGT rate: stack the gain on top of your taxable income. The portion of gain that falls within the basic-rate Income Tax band (up to £50,270 in total) is taxed at 18%. The portion that falls above £50,270 is taxed at 24%. Worked example: salary £45,000, gain after AEA = £47,000. Your income uses £45,000 − £12,570 = £32,430 of the basic-rate band. Remaining basic-rate headroom = £50,270 − £45,000 = £5,270. First £5,270 of gain at 18% = £949. Remaining £41,730 at 24% = £10,015. Total CGT = £10,964. Report and pay: residential property CGT must be reported to HMRC and the tax paid within 60 days of completion (not the tax year end) via HMRC's UK Property Account at gov.uk. Late reporting and payment attracts interest and penalties. Principal Private Residence Relief (PRR): if you lived in the property as your main home for part of the ownership period, you may get partial or full CGT exemption. Final 9 months of ownership always qualify for PRR regardless of actual use.
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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.