by Asim Abbas
12 November 2026 
Selling a buy-to-let: how to plan for Capital Gains Tax
Selling a buy-to-let: how to plan for Capital Gains Tax
Many landlords are selling buy-to-lets as costs and regulation rise. A sale can bring a large CGT bill, payable within 60 days.
- CGT at 18% or 24% on residential gains
- Report and pay within 60 days of completion
- Deduct buying and selling costs and improvements
- Spouse transfers can use two exemptions and bands
With rates of 18% and 24% and only a £3,000 exemption, planning before you sell can make a real difference.
This guide explains how to calculate the gain and the main ways to reduce it.
Working out the gain
- Sale price
- Less purchase price
- Less buying costs: SDLT, legal fees, survey
- Less selling costs: estate agent and legal fees
- Less capital improvements, such as extensions
Repairs already claimed against rent can’t be deducted again.
Capital gains tax calculator
Your gain and tax.
Clare sells a flat for £260,000 that she bought for £150,000, with £7,000 buying costs, £5,000 selling costs and a £10,000 loft conversion. Her gain is £88,000. After her £3,000 exemption, £85,000 is taxable. With £20,000 of basic rate band left, she pays 18% on £20,000 and 24% on £65,000, £19,200, within 60 days.
Planning ideas
- Transfer a share to your spouse: tax-neutral, uses their exemption and basic rate band
- Time the sale: a year with lower income keeps more gain at 18%
- Pension contributions: extend your basic rate band
- Use losses: from other disposals
- Private Residence Relief: if you once lived there
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 4179The 60-day return
Use HMRC’s UK property account to report and pay within 60 days of completion. You also include the gain on your Self Assessment return, and any overpayment is refunded.
Selling with tenants
A tenanted property may sell for less, but you avoid void costs. Selling to the tenant is another option.
Property companies
Properties held in a company pay Corporation Tax on gains instead, with no 60-day rule but extraction costs later.
See HMRC’s guide to tax when you sell property, our CGT on property guide and our CGT service.
What should I do next?
Costs and improvements.
Before exchange.
Lower income?
Frequently Asked Questions
What CGT rate applies to buy-to-let?
18% within the basic rate band and 24% above.
When must I pay CGT on a property sale?
Within 60 days of completion.
Can I deduct improvements?
Yes, capital improvements reduce the gain.
Does transferring to my spouse help?
It can use their exemption and basic rate band.
Can I deduct repairs?
Not if already claimed against rental income.
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
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
