Answers · UK 2025/26

What is the CGT rate on property in 2026?

For 2026/27, Capital Gains Tax on residential property (such as a buy-to-let or second home) is 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, after deducting the £3,000 annual exempt amount. Your main home is usually exempt.

Last updated: 1 June 2026Last reviewed: 1 June 2026How we verify

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Capital Gains Tax (CGT) on UK residential property in 2026/27 is charged at 18% where the gain falls within your remaining basic-rate band, and 24% on any part falling into the higher or additional-rate band. The annual exempt amount is £3,000, so only gains above that are taxable. Your only or main home is normally fully exempt under Private Residence Relief, so these rates mainly affect buy-to-let landlords, second homes and inherited property. Worked example: you sell a buy-to-let for a £53,000 gain. Deduct the £3,000 exemption, leaving £50,000 taxable. If you are a higher-rate taxpayer, the whole £50,000 is taxed at 24% = £12,000 CGT. If you were a basic-rate taxpayer with, say, £10,000 of unused basic-rate band, that £10,000 of gain would be taxed at 18% (£1,800) and the remaining £40,000 at 24% (£9,600), totalling £11,400. You can reduce the gain by deducting buying and selling costs, stamp duty paid on purchase, and the cost of capital improvements. Crucially, CGT on residential property must be reported and paid within 60 days of completion using HMRC’s online service, not just through your annual return. CGT is a UK-wide tax, so the rates are the same in Scotland (though Scottish Income Tax bands determine how much of your gain is taxed at 18% versus 24%). Use the Capital Gains Tax and Stamp Duty calculators to estimate your bill.