Capital Gains Tax advice for landlords and property investors (2026/27)
Capital Gains Tax (CGT) is charged on the gain when you sell, give away or swap property, shares or cryptoassets. For 2026 to 2027, individuals pay 18% or 24% on gains above a £3,000 annual exempt amount, and UK residential property sales must be reported and paid within 60 days. Optimise Accountants helps landlords calculate the gain and plan before they sell.
CGT at a glance: 2026 to 2027
| Rule | Current position | Source |
|---|---|---|
| Rates for individuals | 18% and 24% | GOV.UK: Capital Gains Tax rates and allowances |
| Annual exempt amount | £3,000 (most individuals) | GOV.UK: Capital Gains Tax rates and allowances |
| Basic rate band | £37,700, added to your taxable income to decide the rate | GOV.UK: Capital Gains Tax rates |
| Trustees and personal representatives | 24% | GOV.UK: Capital Gains Tax rates and allowances |
| Gifts to others | Treated as a sale at market value (not spouses, civil partners or charities) | TCGA 1992 s17; GOV.UK: market value |
| Death | No CGT on death. Heirs take the asset at market value on the date of death | TCGA 1992 s62 |
| UK residential property | Report and pay within 60 days of completion | GOV.UK: report and pay CGT on UK property |
| Shares and cryptoassets | Chargeable assets unless held in an ISA or PEP | GOV.UK: what you pay Capital Gains Tax on |
UK rules for the 2026 to 2027 tax year, checked against official sources on 12 October 2026. The rates changed on 30 October 2024, so older figures such as 10% and 20% no longer apply.
How is Capital Gains Tax on a property calculated?
- Start with the sale price.
- Deduct selling costs, such as estate agent and legal fees.
- Deduct the purchase price.
- Deduct acquisition costs, such as Stamp Duty Land Tax and legal fees.
- Deduct capital improvement costs, such as an extension.
- Deduct the annual exempt amount, then apply 18% or 24%.
| Step | Working | Amount |
|---|---|---|
| Sale price | £300,000 | |
| Selling costs | (£5,000) | |
| Purchase price | (£200,000) | |
| Acquisition costs | SDLT and legal fees | (£8,000) |
| Capital improvements | Extension | (£15,000) |
| Gain | £72,000 | |
| Annual exempt amount | (£3,000) | |
| Taxable gain | £69,000 | |
| CGT at 24% | £69,000 × 24% | £16,560 |
Illustration, not a real client. Higher-rate taxpayer, whole gain above the basic rate band, 2026 to 2027 rates. Part of a gain inside the band is taxed at 18%.
When must Capital Gains Tax be reported and paid?
| Asset | How and when | Source |
|---|---|---|
| UK residential property | Report and pay within 60 days of completion using a CGT on UK property account. If you file Self Assessment, include it in the return too | GOV.UK: report and pay CGT on UK property |
| Other assets, such as shares and cryptoassets | Report in a Self Assessment return, or use the HMRC real time service if you are UK resident | GOV.UK: report other capital gains |
Interest and penalties can apply if you report or pay late.
Which lawful ways can reduce Capital Gains Tax on a sale?
- Deduct every allowable cost: purchase, acquisition, improvement and selling costs.
- Use the annual exempt amount: £3,000 for 2026 to 2027, per individual.
- Transfer between spouses or civil partners: gifts to a spouse or civil partner are not usually taxed for CGT (GOV.UK: what you pay Capital Gains Tax on).
- Use losses: capital losses can reduce gains in the same or later years.
- Private Residence Relief: can exempt part or all of the gain on a home you lived in. See our Private Residence Relief guide.
- Timing: selling across two tax years can use two annual exempt amounts.
The right route depends on your facts, and some options have conditions or costs. Take advice before you sell.
If you are thinking about the wider picture, read how CGT and inheritance tax interact, and our guide to CGT on buy to let property.
Capital Gains Tax questions landlords ask
What is the CGT rate on a rental property in 2026/27?
18% on the part of the gain within your unused basic rate band and 24% above it, after the £3,000 annual exempt amount.
Do I have to report a property sale within 60 days?
Yes, if there is CGT to pay on UK residential property. You must report and pay within 60 days of completion.
Is there CGT on shares and crypto?
Yes. Shares outside an ISA or PEP and cryptoassets are chargeable assets, taxed at the same 18% and 24% rates.
Is there CGT when someone dies?
No. Death is not a disposal, and the asset passes to the heirs at its market value on the date of death.
General information only, not tax advice. Rules change; take advice on your own circumstances. Written by Simon Misiewicz FCCA, ATT, MBA, Director, Optimise Accountants Limited. Last reviewed: 12 October 2026.
Key points to check before you sell
Three things decide most Capital Gains Tax bills on a property sale.
Tax on the gain
CGT is charged on the gain, not the sale price: sale price less selling costs, purchase price, acquisition costs and capital improvement costs. The first £3,000 of gains is covered by the annual exempt amount in 2026 to 2027.
60 day tax filing
UK residential property sales must be reported and any CGT paid within 60 days of completion. Interest and penalties can apply if you are late.
Self Assessment
If you file Self Assessment, you also include the sale in your tax return, alongside the 60 day report.
What to expect from a Capital Gains Tax consultation
Capital Gains Tax planning is most useful before you sell. The aim is a calculation you can rely on and a clear view of the options.
- Before the call: we review your sale, your costs and your tax position.
- On the call: we take you through the options for your disposal and the conditions attached to each.
- After the call: we send the recording and notes so you can act on the advice.
Simon Misiewicz FCCA, ATT, MBA leads our property tax advice. Nothing here is a promise of a saving: the result depends on your facts. You can book a call or download the UK Property Tax Guide. You can benefit from Private Residence Relief where it applies.
Tax consultation (pre call documents)
Landlords upload the details about a proposed property sale. Property investors use our call to upload all documents relating to the original purchase and proposed sale. Our tax advisors discussed information received prior to the tax call and agree the very best tax solution to minimise the landlords CGT liability. Calls with our capital gains tax specialists may be booked within the next two working days
Tax calculation
Our capital gains tax advisors will calculate the tax liability and identify any potential tax savings before the call takes place.
Tax Consultation
Our Capital Gains Tax expert will be on the call to discuss the identified property tax saving plans. You will agree on the right plan for you. Once approved, the plan is documented into a property disposal tax plan and sent to you in an email within two working days. The meeting is also recorded so that landlords can listen to the call whenever they want to remind them of the most critical aspects of the tax plan.
