How much is Capital Gains Tax on a rental property?
By the VoxaMTD team. Last verified 31 October 2026
GOV.UK gives Capital Gains Tax rates from 6 April 2026 of 18% on gains within the basic Income Tax band and 24% above it. For 2026 to 2027 the annual allowance is £3,000.
Selling a property that is not your home, such as a buy-to-let, can mean paying Capital Gains Tax on the profit. You work out your gain first to find out whether tax is due.
You must report and pay Capital Gains Tax on most sales of UK property within 60 days. You do not usually pay tax on gifts to a husband, wife, civil partner or charity.
Your gain is the sale price less what you paid and certain allowable costs. Rental income tax is separate and is reported on your Self Assessment return. Because the rate you pay depends on your Income Tax band, the size of the sale and your other income in the year both matter, so work out your figures before you exchange contracts.
Read next
- What is Capital Gains Tax (CGT)? →
- Rental Income Tax Tips for UK Landlords (2026) →
- Capital gains tax calculator →
- Year-end Self Assessment →
Sources
- GOV.UK: Capital Gains Tax rates and allowances
- GOV.UK: Tax when you sell property: work out your gain