Residential Property CGT
Capital Gains Tax on gains from selling UK residential property that is not your main home, charged at 18% for basic-rate taxpayers and 24% for higher- and additional-rate taxpayers. Gains on main residences are generally covered by Private Residence Relief and are not taxable. UK residents must report and pay residential property CGT within 60 days of completion of the sale.
How it works
Reporting is done through HMRC's dedicated CGT on UK property online service, separate from an ordinary Self Assessment return, with the tax due paid on account within 60 days of completion. This is then reconciled and confirmed on your annual Self Assessment return for that tax year, so most people end up interacting with both systems for the same gain.
Private Residence Relief exempts most home sales entirely, provided the property has been your only or main home throughout your ownership. Periods where the property was let out, used as a second home, or left empty for extended periods can reduce or remove the relief for that portion of ownership.
Which rate applies — 18% or 24% — depends on your other taxable income for the year: gains that fall within your remaining basic-rate band are taxed at 18%, while any portion pushing you into higher- or additional-rate territory is taxed at 24%.
Example: CGT on a rental property sale
A higher-rate taxpayer sells a rental property with a gain of £20,000.
The Annual Exempt Amount of £3,000 is deducted first: £20,000 − £3,000 = £17,000 taxable gain.
At the 24% rate for higher-rate taxpayers, tax due is £17,000 × 24% = £4,080.
Frequently asked questions
Does this apply to selling my main home?
Usually not — Private Residence Relief exempts gains on a property that has been your only or main home throughout your ownership, so most people have nothing to report or pay.
What happens if I miss the 60-day reporting deadline?
HMRC can charge penalties and interest for late reporting and late payment, even if the gain is also correctly declared later on your annual Self Assessment return.
Can capital losses reduce the tax I owe?
Yes, losses from other asset disposals in the same or earlier years can be offset against a residential property gain before the Annual Exempt Amount is applied and tax is calculated.
Related Terms
Capital Gains Tax
A tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value, such as shares, investment property, or business assets.
Annual Exempt Amount
The amount of capital gains you can make in a tax year before Capital Gains Tax becomes due, currently £3,000 for individuals.
Business Asset Disposal Relief (BADR)
A Capital Gains Tax relief on qualifying business disposals — charged at a flat rate of 10% for 2024/25, 14% for 2025/26, and 18% from April 2026 — up to a £1 million lifetime limit per individual.
Effective Rate
The average rate of tax you pay across all your income, calculated by dividing your total tax bill by your gross income.
Try the calculator
Use our free tool to see how residential property cgt affects your tax.