Capital Gains Tax Bridging Loan Rates 2026 — Updated October 2026
- CGT reporting and payment deadline from completion date — residential property
- 60 daysCGT reporting and payment deadline from completion date — residential property
- CGT rates 2026 — basic rate / higher rate on residential property gains
- 18% / 24%CGT rates 2026 — basic rate / higher rate on residential property gains
- HMRC automatic penalty for late CGT return (1% of tax owed — capped at £1,200)
- £1,200HMRC automatic penalty for late CGT return (1% of tax owed — capped at £1,200)
- HMRC interest on unpaid CGT from day 61 — accrues daily
- 7.75% p.a.HMRC interest on unpaid CGT from day 61 — accrues daily
CGT bridging loans in October 2026 — used to pay Capital Gains Tax arising from a property disposal within the 60-day reporting and payment deadline — cost the same as standard business bridging: 0.65%–0.90%/month. The 60-day rule requires UK residential property gains to be reported and the estimated CGT paid within 60 calendar days of completion. The bridge funds the CGT payment while the seller arranges longer-term funds — whether from reinvestment proceeds, drawdown from a SIPP, or the sale of another asset. Missing the 60-day deadline triggers penalties and interest; a bridge prevents this.
CGT Bridge Cost vs HMRC Penalty — October 2026
Swipe the table sideways to see every column.
| CGT liability | Bridge (0.78%/month, 45 days) | HMRC penalty (day 61 onwards) | Bridge vs penalty + interest | Verdict |
|---|---|---|---|---|
| £30,000 | £351 interest + £450 arrangement + £1,500 legal = £2,301 | £300 penalty + 7.75% p.a. = £640/month interest | Break-even: approximately 3.5 months late. Bridge cheaper if late for 3.5+ months. | Bridge if significant delay likely; pay direct if can arrange in <3 months |
| £80,000 | £936 interest + £1,200 arrangement + £1,500 legal = £3,636 | £800 penalty + 7.75% p.a. = £517/month interest | Break-even: approximately 5.5 months late | Bridge if delay confirmed; HMRC payment preferable if funds accessible |
| £180,000 | £2,106 interest + £2,700 arrangement + £1,800 legal = £6,606 | £1,200 penalty + 7.75% p.a. = £1,163/month interest | Break-even: approximately 4.6 months late | Bridge if delay likely; prevents escalating interest cost |
What determines your rate
CGT rates 2026 — what changed and what applies
CGT on UK residential property disposals in 2026: 18% (basic rate taxpayer) or 24% (higher rate taxpayer) on the gain after the annual exempt amount (£3,000 for 2026/27). Note: these rates apply to residential property — commercial property gains are taxed at 18% / 24% also (post-Autumn Budget 2024 alignment). PPR (Principal Private Residence) relief eliminates CGT on a main home. The 60-day rule applies to UK residential property disposals where a gain arises after PPR and any available reliefs.
Why a CGT bridge is used
The 60-day deadline is tight. At completion (day 0), the seller may not yet have: (1) completed their tax return; (2) taken advice on whether PPR or other reliefs apply; (3) arranged funds from the sale proceeds (which may be tied up in a chain or reinvestment). A CGT bridge allows the seller to pay an estimated CGT amount within 60 days — preventing penalties and interest — while the precise liability is confirmed and longer-term funding arranged. The bridge is typically repaid within 3–6 months once the tax position is finalised.
Estimated vs actual CGT — the overpayment problem
The 60-day payment is based on an estimated CGT liability. If the final liability (calculated in the annual self-assessment return) is lower than the estimate, HMRC repays the overpayment. If the bridge is sized to the estimate and the actual liability is lower, the excess bridge can be redeemed early — saving interest cost. DBF advises on sizing the bridge conservatively (to avoid underpayment penalties) while not significantly over-borrowing.
Property security for a CGT bridge
CGT bridges are secured against UK property — often a different property from the one that was sold (as that is now transferred). A director's home, an investment property, or a commercial property can all be used. The security must be UK property with sufficient equity. DBF identifies the most appropriate security at the initial enquiry stage.
Worked cost example
- Investment property owned (free of charge)
- £420,000 value
- Total
- £2,973
Residential property disposed. Gain (after PPR and AEA): £160,000. Higher rate taxpayer.
Estimated CGT: £160,000 × 24% = £38,400. Due within 60 days of 15 August 2026 = 14 October 2026.
Seller has used sale proceeds as deposit on next property. No liquid funds for CGT.
CGT bridge: £38,400 at 0.78%/month. Security: investment property (9.1% LTV — very low).
3-month term. Interest: £897. Arrangement fee (1.5%): £576. Legal: £1,500.
CGT paid by 10 October 2026 (4 days before deadline). No penalty. No interest.
Month 3: self-assessment return completed. Actual CGT: £36,200 (marginally lower than estimate).
Bridge repaid: £38,400 from savings realised after sale chain completes. HMRC repays £2,200 overpayment.
Net total cost of bridge: £2,973. Penalty saved: £384 + daily interest avoided.
Terms the same working day — no upfront fees on loans over £1m
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Tax Payment Finance
- About
- CGT Bridging Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
The Autumn Budget is on Wednesday 28 October 2026. Tax payment finance is priced as short-term secured or business lending and is not directly affected by the Budget, but changes to CGT, IHT or payment dates could change how much needs funding and when.
This guide will be updated on 29 October.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
What is the CGT 60-day rule?
From April 2020, UK residents disposing of UK residential property and realising a taxable gain must report the disposal and pay an estimated CGT amount within 60 calendar days of the completion date. The 60-day clock runs from completion — not exchange. Missing the deadline triggers penalties and interest from HMRC.
What rate does a CGT bridging loan cost?
CGT bridges cost 0.65%–0.90%/month — the same as standard residential bridging. The rate depends on LTV (the bridge amount as a percentage of the security property value). At very low LTV (10%–30%), rates start around 0.65%–0.70%/month. Arrangement fees: 1.5%–2%. DBF models total cost including all fees before recommending a bridge.
What are CGT rates on property in 2026?
UK residential property: 18% (basic rate taxpayer) or 24% (higher rate taxpayer) on the gain after the annual exempt amount (£3,000 for 2026/27). Main home: exempt via Principal Private Residence (PPR) relief. Commercial property and other assets: 18% / 24% (aligned post-Autumn Budget 2024). Confirm current rates with your accountant before calculating the bridge amount.
What happens if I miss the CGT 60-day deadline?
HMRC charges an automatic penalty: £100 for a return filed late, then escalating penalties (up to £1,600 for 12 months late). In addition, HMRC charges late payment interest at 7.75% p.a. on the unpaid CGT from day 61. A bridge prevents these costs for significantly less than the accumulated penalties and interest in most cases.
Can I use the property I sold as security for a CGT bridge?
No — if you have sold the property, it has transferred to the buyer and cannot be used as security. The bridge must be secured against other property you own. An investment property, commercial property, or (with care, as it triggers regulated bridging) your primary residence can be used.
How quickly can a bridging loan complete?
Typically 2–4 weeks; the latest market average is 46 days. Urgent cases with clean title and a quick valuation can complete in 7–10 working days.
What fees come on top of the interest rate?
An arrangement fee of 1%–2%, valuation of about £500–£1,500, legal fees of £1,500–£3,000 for both sides, and on some products an exit fee of up to 1%.
Can the interest be rolled up?
Yes. Most bridges roll interest into the loan and repay it at the end, so there are no monthly payments; serviced and retained interest are also available.
What exit strategies do lenders accept?
A sale, a refinance to a mortgage, or other funds such as an inheritance or business sale. The stronger the evidence, the better the rate.
Can I get a bridging loan with bad credit?
Often, yes. Lenders focus on the property and exit; recent defaults or CCJs usually move you up a pricing band rather than rule you out.
Is a bridging loan regulated?
Only when it is secured on a home you or your family live in or will live in. Investment and business bridges are unregulated.
Where this applies
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533