What CGT rate applies to buy-to-let sales?

For residential property disposed of from 6 April 2024, gains are taxed at 18% within the basic rate band and 24% within the higher rate band. These rates apply specifically to residential property — other assets have different rates.

When must CGT be reported and paid?

You must file a Residential Property Return and pay the estimated CGT within 60 days of completion. This is separate from your annual Self Assessment return, though the figures must also be included there.

What is the CGT annual exempt amount?

The annual exempt amount (AEA) reduces the gain before tax. Check the current year's figure on GOV.UK — it has been reducing and may reach £0 in future tax years.

Can I claim Private Residence Relief on a rental property?

If the property was your main residence at any point, PRR covers that period plus the final 9 months of ownership. Lettings relief may additionally apply only if you shared the property with a tenant.

What costs reduce the capital gain?

Purchase price, stamp duty land tax, legal fees on purchase and sale, estate agent fees, and capital improvement costs (not repairs) all reduce the gain. Keep records for the entire ownership period.

Tax & Finance10 min readLast reviewed 4 July 2026

Capital Gains Tax on Rental Property in England: Landlord Guide

CGT rates, allowances, and reporting rules when selling a buy-to-let in England — including Private Residence Relief, lettings relief changes, and payment deadlines.

England only. This guide applies to private rented property in England. Wales and Scotland have separate legal frameworks — dedicated guides will be published separately.

Key takeaways

CGT on residential property is charged at 18% (basic rate) or 24% (higher rate) from April 2024.
Landlords must report and pay CGT within 60 days of completion via a Residential Property Return.
Lettings relief is now only available where the landlord shares occupancy with the tenant.
Private Residence Relief may apply for periods the property was your main home.
Allowable costs include purchase price, stamp duty, improvement costs, and selling expenses.
Accurate records of capital expenditure over the ownership period reduce the CGT bill on sale.

CGT when selling rental property

When a landlord sells a buy-to-let property in England for more than its acquisition cost (plus allowable expenses), the profit is a chargeable gain subject to Capital Gains Tax. Unlike income tax on rent, CGT is a one-off charge on disposal.

Tax band	CGT rate (residential)	CGT rate (other assets)
Basic rate	18%	10%
Higher rate	24%	20%

Step	Calculation
1. Disposal proceeds	Sale price minus selling costs
2. Less acquisition cost	Purchase price plus stamp duty and purchase legal fees
3. Less capital improvements	Extensions, new kitchens (not repairs)
4. Chargeable gain	Proceeds minus total costs
5. Less reliefs	PRR, lettings relief (if eligible), AEA
6. Tax due	Gain × applicable rate

Relief	Eligibility	Effect
Private Residence Relief	Property was your main home	Exempts periods of occupation
Final period exemption	Always available	Last 9 months of ownership exempt
Lettings relief	Shared occupancy with tenant	Lower of £40,000 or gain attributable to letting
Annual exempt amount	All individuals	Reduces gain by AEA amount

Capital Gains Tax on Rental Property in England: Landlord Guide

Key takeaways

CGT when selling rental property

CGT rates for residential property

How to calculate the gain

60-day reporting requirement

Available reliefs

Frequently asked questions

Official sources

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