Capital Gains Tax on selling a rental property in 2026: rates, PRR and reporting

How CGT works when a UK landlord sells a rental property: the 60-day reporting rule, current rates on residential property, the annual exempt amount, and when Private Residence Relief applies. Sourced entirely from GOV.UK and HMRC.

TL;DR

• When a UK residential property that is not your main home is sold at a gain, Capital Gains Tax (CGT) must be reported and paid within 60 days of completion using the 'Capital Gains Tax on UK property' account.
• For 2025/26 the annual exempt amount is £3,000 for individuals.
• CGT on residential property is charged at 18% for gains within the basic-rate band and 24% above it.
• Private Residence Relief (PRR) may reduce the gain if the property has at some point been your only or main home (see HMRC helpsheet HS283 for the rules).

The 60-day reporting rule

If you are a UK resident and you sell a UK residential property that is not your main home, you must report the disposal and pay any CGT due within 60 days of completion. GOV.UK: "You must report and pay any Capital Gains Tax due on UK residential property within: 60 days of selling the property if the completion date was on or after 27 October 2021." (See Report and pay your Capital Gains Tax.)

Missing the 60-day deadline can result in a late-filing penalty and interest on unpaid tax (see HMRC penalties).

Rates and allowances (2025/26)

• Annual exempt amount: £3,000 for individuals (Capital Gains Tax allowances).
• Rates on residential property gains for individuals: 18% for gains falling in the basic-rate band and 24% above it (Capital Gains Tax rates).

The rate depends on your total taxable income plus the gain in the tax year — GOV.UK's guidance sets out the step-by-step method for working out which slice of the gain falls in each band.

How the gain is calculated

The chargeable gain is broadly the disposal proceeds less: - the acquisition cost; - incidental costs of acquiring and selling (legal fees, estate agent fees, Stamp Duty Land Tax on purchase); and - capital improvements to the property (not routine repairs).

See HMRC's guidance on allowable costs.

Private Residence Relief

If the property has at some point been your only or main residence, part of the gain may qualify for Private Residence Relief. The rules on how relief is calculated are set out in HMRC's helpsheet: HS283 Private Residence Relief.

Losses

HMRC explains how losses on chargeable assets are treated: Capital Gains Tax losses.

Non-UK residents

Non-UK residents disposing of UK residential property have separate reporting obligations under the Non-Resident CGT rules and must file a return within 60 days of completion, whether or not tax is due. See Tell HMRC about Capital Gains Tax on UK property or land if you're non-resident.