selling

CGT on buy to let property: how much you pay, when it is due and worked examples

CGT on buy to let property explained: the 18% and 24% rates, the 60 day deadline, which costs reduce the gain, and worked examples for 2026 to 2027.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 7

What is taxed

General information, not advice. GOV.UK says you may have to pay Capital Gains Tax when you sell property that is not your home, and names buy-to-let properties as an example. The tax applies to the gain. GOV.UK says your gain is usually the difference between what you paid and what you got when you sold. The rules here are for UK residents selling in England and Wales and the figures are for 2026 to 2027. We read the GOV.UK pages on 4 November 2026. The Budget can change rates and allowances, so recheck before you sell.

Part 2 of 7

Rates and allowance

GOV.UK's rates page gives these for gains from 6 April 2026:

Basic rate taxpayers pay 18% on the part of their gain that falls inside the basic rate band, and 24% on any part above it.
Higher and additional rate taxpayers pay 24%.
The tax-free allowance is £3,000 for 2026 to 2027.
The basic rate band is £37,700 for 2026 to 2027.

To find the band, GOV.UK says to take your taxable income (income minus the Personal Allowance and other reliefs), deduct the £3,000 allowance from your gains, and add the remaining gain to your taxable income. The part that fits in the basic rate band is taxed at 18%.

Part 3 of 7

Which costs reduce the gain?

GOV.UK says the costs of buying, selling or improving the property reduce your gain. Its examples are estate agents' and solicitors' fees and the cost of improvement works such as an extension. Normal maintenance, such as decorating, does not count. If you own the property jointly, you work out the gain for your share only. The page on working out your gain points to separate guidance on stamp duty and on gifts to a spouse or civil partner, so read that if either applies.

Part 4 of 7

Worked examples

These use our CGT code (lib/cgt.ts). The inputs are round illustrations, not typical values: bought for £150,000, with £5,000 of buying costs and £4,000 of selling costs, no improvements. Income is other taxable income in the year, before the Personal Allowance of £12,570.

Sale price	Other income	Gain	Allowance	Taxable gain	Tax at 18%	Tax at 24%	Total tax
£190,000	£25,000	£31,000	£3,000	£28,000	£4,549	£655	£5,204
£250,000	£25,000	£91,000	£3,000	£88,000	£4,549	£15,055	£19,604
£250,000	£60,000	£91,000	£3,000	£88,000	£0	£21,120	£21,120

In the first row, £28,000 of taxable gain on top of £12,430 of income above the Personal Allowance leaves £25,270 inside the basic rate band, taxed at 18%, and the remaining £2,730 at 24%. In the third row the other income already uses up the basic rate band, so the whole gain is taxed at 24%. The same £250,000 sale therefore produces a different bill. If the owner in the third row had also spent £10,000 on an extension, the gain falls to £81,000 and the tax to £18,720. Our CGT calculator lets you try your own figures.

Part 5 of 7

When it is due

GOV.UK says you must report and pay within 60 days of completing the sale of UK residential property, and that you may have to pay interest and a penalty if you do not report and pay on time. Each joint owner reports their own gain. You can report online through the Capital Gains Tax on UK property service, or by post if you cannot use it. UK residents whose total gains are below the allowance do not need to report them online. If you are registered for Self Assessment, GOV.UK says to include the sale details in your tax return as well. The report asks for the property address, the date you acquired it, the exchange and completion dates, the values, your costs and any reliefs.

Part 6 of 7

Reliefs and special cases

GOV.UK says relief may be available if the property is a business asset, and that you may not have to pay if a dependent relative occupied the property. Private residence relief applies if the property was your home at some time, which our private residence relief guide covers. We have not read an official page on transferring property into a company, or selling through one, so we make no claim on that. A tax adviser can say whether it applies to you.

Part 7 of 7

Planning a sale

Start with what the property could sell for: our free house valuation gives a range from HM Land Registry sold prices. Then compare the tax with what keeping the property would give you. Our landlord keep or sell tool sets the two side by side. If tenants are in place, read our guides to selling a house with tenants and to selling under the Renters' Rights Act. For the general rules on any property, see our guide to capital gains tax when you sell a house.

This page is general information, not tax advice. HMRC's own pages and a qualified adviser are the authority for your return.

Our take

Know the tax before you fix the price

Capital gains tax is charged on your gain, not the sale price, so the same £250,000 sale can produce very different bills depending on your other income. Our view is that landlords should work out the tax first, then decide whether and when to sell, because the 60 day deadline leaves little time to plan afterwards.

Your Property Check can help with the other half of the sum. Our free house valuation gives an honest value range from real HM Land Registry sold prices in your postcode, with the comparable sales and the working shown, and it needs no email or phone number.

Check my value

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

How much CGT do you pay on a buy-to-let?

GOV.UK gives 18% on the part of a gain inside the basic rate band and 24% above it, with 24% for higher and additional rate taxpayers, for gains from 6 April 2026. The first £3,000 of gains is tax free for 2026 to 2027.

When is CGT on a buy-to-let due?

GOV.UK says you must report and pay within 60 days of completing the sale of UK residential property. Late reporting or payment can bring interest and a penalty. Each joint owner reports their own gain.

Can you deduct costs from the gain?

Yes. GOV.UK says the costs of buying, selling or improving the property reduce your gain, such as estate agents' and solicitors' fees and improvement works like an extension. Normal maintenance such as decorating does not count.

What about selling through a company?

We have not read an official page on incorporation or on selling property through a company, so we make no claim here. Ask a tax adviser before transferring any property.

Do I report a sale if the gain is under the allowance?

GOV.UK says UK residents whose total gains are below the tax-free allowance do not need to report them online. If you are registered for Self Assessment, include the sale in your tax return as well.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.