With tax on rental profits rising, more landlords are thinking about selling. Capital gains tax can take a big slice, and the deadlines are tight.
The basics
- Rates: 18% within your basic-rate band, 24% above it.
- Annual exempt amount: £3,000 per person.
- Deadline: report and pay within 60 days of completion.
What affects the bill
The gain is the sale price less what you paid, buying and selling costs, and improvements. Who owns the property, when you sell and your other income all change how much tax you pay.
Selling as part of a bigger plan
Selling some properties can reduce borrowing and Section 24 pressure on the rest, or fund other plans. It's worth looking at the whole portfolio before selling anything.
Thinking of selling? Speak to a specialist before you agree a sale.
Frequently asked questions
What is the capital gains tax rate on rental property?
18% for gains within the basic-rate band and 24% above it. The annual exempt amount is £3,000.
When do I have to pay CGT on a property sale?
For UK residential property, you usually have to report the sale and pay the tax within 60 days of completion.
Can I reduce capital gains tax on a buy-to-let?
Costs of buying, selling and improving the property can be deducted, and spreading sales across tax years or between joint owners can help. The best approach depends on your circumstances.
Request a call back
Tell us a little about your situation and we'll call you, usually within one working day, to understand what you need. If it would help, we'll then put you in touch with a landlord tax specialist. We'll always tell you who they are before passing on your details. We don't give advice ourselves, and there's no obligation.