by Asim Abbas
11 November 2026 
Capital Gains Tax on property: rates, reliefs and the 60-day rule
Capital Gains Tax on property: rates, reliefs and the 60-day rule
Selling a buy-to-let, a second home or inherited property can mean a Capital Gains Tax bill, and it’s due much sooner than most people expect.
- CGT on property is 18% or 24% after the £3,000 exemption
- Report and pay within 60 days of completion
- Your main home is usually exempt
- Costs and improvements reduce your gain
You have just 60 days from completion to report and pay, and the rates and exemptions have changed in recent years.
This guide explains how CGT on property works, the reliefs that can cut it and how to avoid penalties.
Who pays CGT on property?
You may pay CGT when you sell or give away UK property that isn’t your main home, including buy-to-lets, second homes, holiday lets, inherited property and land. Non-residents pay CGT on UK property too.
Rates and exemption
For 2025/26 and 2026/27, gains are taxed at 18% within your basic rate band and 24% above it. Everyone has a £3,000 annual exempt amount.
Working out your gain
Gain = sale price − purchase price − allowable costs. Allowable costs include Stamp Duty or Land Transaction Tax on purchase, legal and estate agent fees, and the cost of improvements such as an extension or new kitchen. Repairs and mortgage interest aren’t deductible.
You sell a buy-to-let for £320,000 that cost £210,000. Purchase and sale costs were £12,000 and improvements £18,000, so your gain is £80,000. After the £3,000 exemption, £77,000 is taxable. If you have £10,000 of basic rate band left, CGT is £1,800 + £16,080 = £17,880.
Capital Gains Tax calculator
Estimate CGT at 18% and 24%.
The 60-day rule
If you sell UK residential property and there’s CGT to pay, you must report it and pay an estimate within 60 days of completion using HMRC’s property reporting service. You still include the sale on your tax return, where the final figure is confirmed. Late 60-day returns attract penalties and interest.
Reliefs that can reduce CGT
- Private Residence Relief: covers periods you lived in the property as your main home, plus the final nine months
- Lettings relief: now only applies if you shared the home with your tenant
- Losses: capital losses on other assets can be set against the gain
- Spouse transfers: transfers between spouses are tax-free, so using both exemptions and basic rate bands can help
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Inherited and gifted property
If you inherit property, your cost is its probate value. If you give property away, it’s treated as sold at market value, even though you received nothing. Plan gifts carefully, especially within families. Our Capital Gains Tax team handles 60-day returns, and our CGT calculator gives a quick estimate.
What should I do next?
Including fees and improvement invoices.
Time lived there, losses and spouse planning.
From the completion date.
Our CGT team files 60-day returns.
Frequently Asked Questions
How long do I have to pay CGT on property?
60 days from completion for UK residential property, if tax is due. The sale also goes on your Self Assessment return.
Do I pay CGT on my main home?
Usually not. Private Residence Relief covers the time you lived there as your main home, plus the final nine months.
What is the CGT rate on property in 2026/27?
18% within the basic rate band and 24% above it, after the £3,000 annual exempt amount.
Can I deduct renovation costs?
Improvements, such as an extension, are deductible. Repairs and redecorating usually aren’t.
What if I miss the 60-day deadline?
HMRC charges late filing penalties and interest. File as soon as possible and get advice if you’re late.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
