CGT Property Calculator 2026/27: What You’ll Pay When You Sell a Rental
Last updated 24 June 2026 · 9 min read · By the LandlordTaxAi Editorial Team
The short answer
When you sell a UK rental property, you pay Capital Gains Tax on the profit at 18% (basic-rate band) or 24% (higher/additional rate) for 2026/27, after deducting the £3,000 annual exempt amount. You must report and pay within 60 days of completion. The calculator above estimates your bill.
Selling a buy-to-let triggers Capital Gains Tax — and with the annual exempt amount cut to just £3,000, far more landlords now have a bill. Worse, there’s a tight 60-day deadline to report and pay, separate from your normal tax return, with penalties for missing it.
The calculator above estimates your CGT for 2026/27 in seconds. This guide explains the rates, what you can deduct from the gain, and the 60-day rule. For the deadline detail, see the 60-day CGT deadline.
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CGT Property Calculator 2026/27
Estimate Capital Gains Tax on selling a rental at 18%/24%, after the £3,000 allowance.
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
Residential property rates 2026/27. 60-day reporting applies. Estimate only, not personalised advice.
CGT rates on residential property for 2026/27
Residential property has its own CGT rates, which sit above the rates for other assets. The rate you pay depends on how much of your basic-rate band is left once the gain is stacked on your income.
| Your position | CGT rate on residential property (2026/27) |
|---|---|
| Gain falling in the basic-rate band | 18% |
| Gain falling in the higher/additional-rate band | 24% |
| Annual exempt amount (tax-free) | £3,000 |
The annual exempt amount is just £3,000 for 2026/27 — down from £12,300 a few years ago. A typical property gain now produces a real CGT bill for almost every landlord.
What you can deduct from the gain
CGT is charged on the gain, not the sale price. You start with the proceeds, take off what you paid and your allowable costs, then deduct the £3,000 allowance.
- The original purchase price and acquisition costs (SDLT, legal fees, survey)
- Capital improvements — extensions, a new kitchen that’s an upgrade, EPC improvements
- Selling costs — estate agent and legal fees on disposal
- Any Private Residence Relief if the property was once your main home
Keep every purchase, improvement and sale record for the whole time you own the property — they directly reduce your gain. Capital improvements you couldn’t deduct from rental income (see EPC upgrade costs) come back to help you here.
The 60-day reporting rule
This catches landlords out every year. For a UK residential property disposal with CGT to pay, you must report the gain and pay the tax within 60 days of completion — using HMRC’s online Capital Gains Tax on UK property service, not just your annual return.
Miss the 60 days and HMRC charges late-filing penalties and interest, even if the gain would also appear on your Self Assessment return later.
No surprises when you sell
LandlordTaxAi tracks your purchase price, improvements and costs from day one, so your CGT is accurate and your 60-day deadline never sneaks up on you.
See how it worksA worked example
Ben, a higher-rate taxpayer, sells a rental for £300,000. He bought it for £200,000 and spent £15,000 on a capital improvement; selling costs were £5,000 (2026/27).
| Sale proceeds | £300,000 |
| Less purchase price | −£200,000 |
| Less capital improvement | −£15,000 |
| Less selling costs | −£5,000 |
| Gain | £80,000 |
| Less annual exempt amount | −£3,000 |
| Taxable gain × 24% | £77,000 → £18,480 CGT |
Ben owes £18,480, payable within 60 days of completion. Keeping records of that £15,000 improvement saved him £3,600 in CGT.
Frequently asked questions
What’s the CGT rate on selling a rental in 2026/27?
18% for gains in your basic-rate band and 24% for gains in the higher/additional-rate band, after the £3,000 annual exempt amount.
How much is the CGT allowance?
The annual exempt amount is £3,000 for 2026/27 — much lower than in previous years, so most property gains are now taxable.
When do I have to report and pay?
Within 60 days of completion for a UK residential property disposal with CGT due, using HMRC’s CGT on UK property online service.
What can I deduct from the gain?
Purchase price, buying and selling costs, and capital improvements. If the property was once your main home, Private Residence Relief may also apply.
Do I still report it on my tax return?
Yes. The 60-day return is separate; the gain also goes on your Self Assessment for that tax year, with any over/underpayment reconciled.
Can I use my partner’s allowance too?
If you own the property jointly, each owner uses their own £3,000 allowance and rates against their share — transferring a share to a spouse before sale can help.
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: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances; https://www.gov.uk/capital-gains-tax/rates; https://www.gov.uk/government/publications/changes-to-the-rates-of-capital-gains-tax/capital-gains-tax-rates-of-tax. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.