CGT on Property - Key Facts 2026/27
| Element | Detail | Notes |
|---|---|---|
| CGT rate - basic rate taxpayer | 18% on gains within unused basic rate band (up to £50,270 combined income + gains) | The gain stacks on top of other income when determining which rate applies. |
| CGT rate - higher rate taxpayer | 24% on gains above the basic rate threshold | Most BTL landlords pay 24% on the majority of the gain. |
| Annual exempt amount | £3,000 per individual (2026/27) | Down from £12,300 in 2022/23 - many more landlord sales now generate material CGT. |
| 60-day deadline | 60 calendar days from completion date | Completion date - not exchange. Solicitors do not automatically notify HMRC. |
| Penalty for missing deadline | £100 immediately; £300 at 6 months; £300 at 12 months. Plus 7.75% p.a. interest from day 61. | Penalties stack on top of interest. |
| How to report | HMRC's Capital Gains Tax on UK property online account - separate from SA. | Your accountant can file on your behalf. |
Indicative rates - August 2026. Rates change daily. Actual rate depends on LTV, security, credit profile, loan size, and exit strategy. Contact our team for a live rate comparison for your specific case. All rates sourced from lender product sheets and publicly available market data.
What determines your rate
How to calculate your CGT liability: (1) Sale proceeds minus purchase cost minus allowable costs (SDLT on purchase, legal fees both sides, qualifying improvements). (2) Deduct annual exempt amount (£3,000). (3) Apply CGT rate: 18% within unused basic rate band; 24% above. The resulting figure is the payment due within 60 days.
Why 60 days from completion - not exchange: This catches many landlords unaware. If you exchange in October and complete in November, the clock starts from November. A solicitor completing on your behalf does not automatically notify HMRC - you (or your accountant) must log into HMRC's Capital Gains Tax on UK property service and file and pay.
Why proceeds are often unavailable: Landlords selling one BTL and purchasing another simultaneously commit the proceeds to the new purchase deposit, SDLT, and legal fees before the CGT is calculated. By day 50, cash is deployed and the CGT bill arrives. A CGT bridge against the retained portfolio or new property provides the funds without disrupting the investment.
Annual SA reconciliation: The 60-day payment is an estimated payment on account. The annual SA return (31 January following the tax year) reconciles the final position - if losses from other disposals later in the year reduce the net CGT, you receive a refund. If the estimate was too low, you pay the balance via SA with interest from the 60-day deadline.
Worked cost example
- BTL sold for £320,000. Purchased 2015 at £180,000. Improvement costs £20,000. Sale costs £8,000.
- Capital gain: £320,000 − £180,000 − £20,000 − £8,000 = £112,000.
- Taxable gain: £112,000 − £3,000 exempt = £109,000.
- Higher-rate taxpayer: CGT at 24% = £26,160.
- Completion 10 August 2026. Deadline: 9 October 2026.
- Proceeds reinvested in new BTL (completion 15 August). Cash available for CGT: £5,000. Shortfall: £21,160.
- CGT bridge: £21,160 on new BTL (£295,000 value, 7.2% LTV) at 0.65%/month for 3 months.
- Cost: £418 interest + £317 fee + £1,500 legal = £2,235.
- HMRC COST if 60-day deadline missed by 30 days: £100 penalty + 7.75% interest for 30 days on £21,160 = £135 interest. Total: £235.
- HMRC COST at 6 months: £235 + £300 further penalty + ongoing interest.
- NET SAVING at 30 days: HMRC (£235) is £2,000 cheaper than bridge (£2,235). Bridge is for certainty, not cost saving at short delays.
- NET SAVING at 6 months: HMRC (£635+) is £1,600 cheaper than bridge. HMRC late payment on CGT is relatively cheap for short delays.
- CONCLUSION: CGT bridging is primarily about compliance certainty - the missed 60-day deadline creates a permanent SA compliance note. Where funds can be found within 30 days (HMRC TTP or own resources), the cost difference favours HMRC. Where certainty is needed, bridge is the right tool.
Rate context and outlook
The CGT annual exempt amount reduction from £12,300 (2022/23) to £3,000 (from April 2024) means many more BTL and second home sales now generate a CGT liability - and therefore a 60-day filing and payment obligation. HMRC has seen significant growth in 60-day CGT filings since 2024. DBF sees CGT bridging as a fast-growing enquiry type - particularly from active property investors.