Capital Gains Tax on selling property in the UK: rates and the 60-day deadline

Capital Gains Tax (CGT) is a tax on the profit from selling an asset. For property it usually arises when you sell something other than your main home: a second home, a buy-to-let flat, business premises, land or inherited property. Selling your own main home is normally free of CGT thanks to Private Residence Relief.

What are the rates?

It is the gain that is taxed, not the whole sale price — the difference between what you paid and what you sold for, less costs (agent and legal fees, the cost of improvements). In the 2026-27 tax year the first £3,000 of gains a year is exempt (the annual exempt amount). On the rest, higher and additional-rate taxpayers pay 24%. Basic-rate taxpayers pay 18% on the part of the gain that falls within their basic-rate band (£37,700 in 2026-27) and 24% on anything above it.

ONLYWAY NEWSLIVELaw · 29.10How to make a legally valid will in England and WalesTax · 29.10Capital Gains Tax on selling property in the UK: rates and the 60-day deadlineMoney · 29.10Industrial Injuries Disablement Benefit: up to £233.90 a week for a work injuryTax · 29.10UK tax codes explained: what the numbers and letters on your payslip meanTravel · 29.10Freedom Pass for Londoners aged 66+: free travel and how to applyMoney · 29.10Free childcare in England: up to 30 hours a week for working parentsJobs & Business · 29.10Maternity pay in the UK: how Statutory Maternity Pay works and who qualifiesTax · 29.10High Income Child Benefit Charge: when you have to pay Child Benefit backLife · 29.10NHS dental charges in England: what each band costs and who is treated freeMoney · 29.10Parents' Learning Allowance: up to £2,024 a year for students with childrenONLYWAY NEWS · appInstall the ONLYWAY NEWS appFresh UK news, classifieds, key dates and exchange rates on your home screen, one tap away. Free.NewsClassifiedsCalendarRates

The key rule — 60 days

When you sell UK residential property that produces a CGT bill, you must report and pay the tax within 60 days of completion. This is done through HMRC's separate online service, "Report and pay Capital Gains Tax on UK property," not only in your annual return. Missing the deadline risks penalties and interest.

What reduces the tax?

You can deduct the costs of buying and selling and the cost of capital improvements (but not ordinary repairs). Transferring property to a spouse or civil partner is normally free of CGT — which lets a couple use both annual exempt amounts. Some business assets qualify for Business Asset Disposal Relief at 18%.

What to do in advance

Keep all your records of the purchase, sale and improvements — you need them to work out the gain. If you are unsure whether a property counts as your main home, check the Private Residence Relief rules: moving house and letting out part of a home make the sum more complex. Always check the current rates, thresholds and reporting process on GOV.UK.