Capital Gains Tax on Commercial Property (2026/27)
Last updated 23 June 2026 · 10 min read · By the LandlordTaxAi Editorial Team
The short answer
Since 30 October 2024 commercial property gains are taxed at the same 18% and 24% rates as residential, after the £3,000 allowance. But there is no 60-day report — you declare it on your Self Assessment return — and you may qualify for reliefs such as Business Asset Disposal Relief (18% from April 2026) or rollover relief that residential landlords cannot use.
“Commercial” (non-residential) property means offices, shops, warehouses, industrial units and most mixed-use premises. For years it enjoyed lower CGT rates than residential, but the October 2024 Budget aligned the main rates. What still sets commercial property apart is the absence of the 60-day rule and access to valuable business reliefs. This guide covers the rates, the reliefs, and a full worked example. For a quick residential-style estimate of the headline gain, use our free CGT calculator.
The rates aligned in October 2024
Before 30 October 2024, gains on non-residential assets were taxed at 10%/20%. The Budget raised these main rates to match the residential rates. For 2026/27:
| Your situation | CGT rate on commercial property |
|---|---|
| Gain within your remaining basic-rate band | 18% |
| Gain above the basic-rate band | 24% |
| Qualifying gain with Business Asset Disposal Relief | 18% (from 6 April 2026) |
| Annual exempt amount | £3,000 per person |
Note that Business Asset Disposal Relief, which used to cut the rate to 10%, has been rising: 14% from 6 April 2025 and 18% from 6 April 2026. The relief is still worth having on large gains, but the gap to the standard rate has narrowed sharply.
Free calculator · no sign-up
Capital Gains Tax calculator
Estimate the CGT on your property sale for 2026/27
Result
- Total gain
- £66,000
- Less annual exempt amount
- − £3,000
- Taxable gain
- £63,000
- CGT at 24%
- £15,120
- Net proceeds after CGT
- £50,880
Estimate based on verified 2026/27 UK rates. Informational only — not personal tax advice.
Estimate the headline gain
Enter purchase price, sale price and costs to see the gain and a standard 18%/24% estimate before applying any business reliefs.
Open the free CGT calculatorReliefs that commercial property can unlock
Business Asset Disposal Relief (BADR)
18% from 6 April 2026 on qualifying gains, up to a £1 million lifetime limit. Applies to premises sold as part of disposing of your trading business or used by your personal company — not to passive investment lettings.
Business asset rollover relief
Defer the gain by reinvesting the proceeds in new qualifying business assets within one year before to three years after the sale.
Gift holdover relief
Defer the gain when you give away qualifying business assets, by passing the base cost to the recipient.
A full worked example
Raj, a higher-rate taxpayer, sells the workshop premises his trading company used, qualifying for Business Asset Disposal Relief. He has plenty of his £1 million lifetime BADR limit left.
| Sale price | £500,000 |
| Less: selling costs | − £9,000 |
| Less: purchase price | − £300,000 |
| Less: buying costs (SDLT + legal) | − £13,000 |
| Gain | £178,000 |
| Less: annual exempt amount | − £3,000 |
| Taxable gain | £175,000 |
| CGT at 18% (BADR rate from April 2026) | £31,500 |
With BADR, Raj pays 18% on the whole qualifying gain — the same as the standard basic-rate slice but applied to all of it, rather than 24% on the part above his band. Without BADR, most of the £175,000 would have been taxed at 24%, costing around £10,000 more. He reports the gain on his Self Assessment return — there is no 60-day deadline for commercial property.
Frequently asked questions
What is the Capital Gains Tax rate on commercial property in 2026/27?
Commercial (non-residential) property gains are taxed at 18% within your remaining basic-rate band and 24% above it, after the £3,000 annual exempt amount. The main CGT rates were raised to 18%/24% for all assets from 30 October 2024, so commercial property now carries the same headline rates as residential property — though it does not have the 60-day reporting requirement and can qualify for business reliefs.
Do I have to report a commercial property sale within 60 days?
No. The 60-day online reporting and payment rule only applies to UK residential property. A gain on commercial or non-residential property is reported through your normal Self Assessment tax return after the end of the tax year, so the cash-flow pressure is much lower. You should still keep full records and set aside the tax.
Can I claim Business Asset Disposal Relief on commercial property?
Sometimes. Business Asset Disposal Relief (BADR) can apply where you sell commercial premises as part of selling all or part of your trading business, or premises used by your personal trading company. BADR reduces the rate on qualifying gains to 18% from 6 April 2026 (it was 14% in 2025/26 and 10% before that), subject to a £1 million lifetime limit. A pure investment property let to an unconnected tenant does not usually qualify.
What is rollover relief on commercial property?
Business asset rollover relief lets a trader defer the CGT on the sale of qualifying business premises if the proceeds are reinvested in new qualifying business assets within a window of one year before to three years after the sale. The gain is effectively rolled into the cost of the new asset and only crystallises when that asset is eventually sold without further reinvestment.
How is the gain on commercial property calculated?
The same way as any property: sale price minus purchase price, minus allowable buying and selling costs (legal fees, agent fees, SDLT or LBTT paid), minus the cost of capital improvements. Deduct the £3,000 annual exempt amount, then apply 18%/24% — or a lower rate if a relief such as BADR applies. If you claimed capital allowances on fixtures, special rules can affect the calculation, so keep those records.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 23 June 2026 · Based on HMRC guidance on Capital Gains Tax rates, Business Asset Disposal Relief and rollover relief, reflecting the Autumn 2024 alignment of the main rates and the BADR rate of 18% from 6 April 2026. Figures are for the 2026/27 tax year. This article is informational only and does not constitute tax advice. Always check the latest details on GOV.UK or with a qualified accountant.