Answers · UK 2025/26
What counts as residential property for UK CGT?
Residential property for UK CGT includes any property used or suitable as a dwelling. Excludes: hotels, B&Bs (mostly), care homes, student halls, your only/main home (Principal Residence Relief). Higher CGT rates apply (24%/18%) and 60-day reporting required for residential.
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UK CGT "residential property" definition 2025/26. Includes: houses, flats, holiday homes, buy-to-let, inherited homes, off-plan purchases. Suitable for use as a dwelling counts — even if currently let to a business. Excludes (use the lower non-residential rates 18%/24%): hotels/inns, care/nursing homes (long-stay healthcare), student halls (managed purpose-built), prisons, military barracks, certain serviced apartments running like hotels, and your only/main home (Principal Residence Relief — usually 100% exempt). Furnished Holiday Lets (FHL): the special FHL regime ends April 2025 — from then, treated as standard residential lettings (and disposals fall into residential CGT rates). Mixed-use: if property is part residential, part commercial, apportion. CGT rates 2025/26: residential 18% (basic-rate band), 24% (higher); non-residential 18%/24% (rates equalised October 2024). Reporting deadline: residential property disposals must be reported AND tax paid within 60 days of completion via gov.uk Property Reporting Service. Other gains: report on Self Assessment by 31 January following the tax year. Principal Residence Relief: full exemption for occupied main residence; final 9 months always exempt; partial relief if let or used for business. Always check whether election under s222 needed for multi-property owners.
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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.