Answers · UK 2025/26
How much Capital Gains Tax do I pay on a buy-to-let in the UK?
CGT on a UK buy-to-let sale is 18% (basic-rate band) or 24% (higher-rate) on the gain above the £3,000 annual exempt amount. Letting Relief no longer available unless you lived in the property too. Report and pay within 60 days of completion.
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UK Capital Gains Tax on buy-to-let property 2025/26. Calculate gain: sale proceeds − (purchase price + acquisition costs + capital improvements + selling costs). Apply £3,000 annual exempt amount. Rate: 18% for the portion that falls within your basic-rate Income Tax band; 24% above. Calculation order: gain stacks on top of your other taxable income. Worked example: salary £45,000, sell BTL for £100,000 gain (after AEA = £97,000). Basic-rate band ceiling £50,270, so £5,270 of gain at 18% = £949; remaining £91,730 at 24% = £22,015. Total CGT: £22,964. Reporting: UK residential property CGT must be reported AND paid within 60 days of completion via gov.uk Property Reporting Service (separate from Self Assessment). Non-residents also must report. Reliefs: Principal Private Residence Relief (PRR) — if you ever lived in the property as your main home, partial PRR applies plus final 9 months always exempt. Letting Relief — since April 2020 only available if owner lived in property AT THE SAME TIME as letting (e.g. lodgers); separate-tenant letting no longer qualifies. Spouse transfers: no CGT between spouses; use both AEAs (£6,000 combined). Limited company landlords pay Corporation Tax on gains instead — no CGT, but cannot use AEA. Worth £30,000+ gain: consider tax planning advice before sale.
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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.