What is the capital gains tax rate on a rental property, and what is the 60-day rule?

In England, Wales, Scotland and Northern Ireland, individual landlords use the same UK capital gains tax rates and the same UK residential-property 60-day reporting rule. This article is about individuals; companies do not pay CGT on property gains.

What is the capital gains tax rate on a rental property?

The capital gains tax rate on selling a rental property is 18% or 24% for an individual landlord from 6 April 2026, not the old 18% or 28% figure still repeated on stale HMRC manual pages. The governing statute says: “Chargeable gains accruing in a tax year to an individual are charged to capital gains tax at a rate of 18% or 24%.” A higher or additional-rate taxpayer pays 24%, because GOV.UK says: “If you’re a higher or additional rate taxpayer, you’ll pay 24% on your gains from 6 April 2026.” If your taxable income plus the gain stays within the unused basic-rate band, GOV.UK says: “If this amount is within the basic Income Tax band, you’ll pay 18% on your gains made from 6 April 2026.” Scottish and Welsh income-tax bands do not set the 18%/24% CGT split, because the CGT calculation assumes the person is not a Scottish or Welsh taxpayer. A company selling a rental property is outside CGT: “capital gains tax is not charged on gains accruing to a company”.

How much is the capital gains tax allowance?

The capital gains tax allowance for an individual is £3,000 for 2026/27, and the Act does not set a 2031 end date for that figure. The statutory annual exempt amount says: “The annual exempt amount for a tax year is £3,000.” Finance Act 2023 made that figure apply for 2024/25 and later years: “The amendment made by subsection (4) has effect for the tax year 2024-25 and subsequent tax years.” HMRC’s tax information note describes the same position more plainly: “For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees.” The allowance is deducted only for that tax year, so unused capital gains tax allowance is not carried forward to another year. You do not pay CGT if your total taxable gains are under your capital gains tax allowance, but the 60-day reporting rule has its own conditions.

What is the 60-day rule for reporting capital gains tax?

The 60-day CGT rule means a UK resident who sells UK residential property with CGT to pay must report and pay within 60 days of completion, not within 60 days of exchange or by the Self Assessment deadline. The legislation says the person “must deliver the return to an officer of Revenue and Customs on or before the 60th day following the day of the completion of the disposal.” GOV.UK states the same rule for landlords: “You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale of the property.” The tax payment is due on the same date, because the statute says: “The amount is payable on the filing date for the return.” For UK residents, there is no 60-day return where the residential property disposal leaves no CGT liability; HMRC’s manual says: “There is no need to report any disposal where there is no CGT liability.” A late 60-day return starts with a £100 penalty: “P is liable to a penalty under this paragraph of £100.”

When do you not have to report a capital gain?

A UK resident does not have to file a 60-day UK-property CGT return where the disposal produces no CGT liability, but a non-resident must report UK property or land disposals even if no tax is due. HMRC’s manual says: “There is no need to report any disposal where there is no CGT liability (although users can report such disposals voluntarily).” That covers the common cases where full private residence relief, the annual exemption, allowable losses, or another relief reduces the charge to nil. GOV.UK also says: “You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.” The non-resident rule is stricter: “You must report all sales of UK property or land(residential and non-residential) if you’re not a UK resident, even if you have no tax to pay.” So the answer to whether you need to report capital gains if under the allowance depends first on UK residence, then on whether the disposal is within the UK-property reporting regime.

If you sell several properties in one tax year, does each one have its own 60 days?

Each UK residential-property completion normally starts its own 60-day reporting and payment clock, unless two or more reportable disposals complete on the exact same day, in which case they go on one combined return. GOV.UK gives the core deadline: “You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale of the property.” That means selling five properties from a portfolio in one tax year does not let you wait and report them together at the end of the year if they complete on different dates. HMRC’s manual confirms that a later disposal in the same tax year needs another property disposal return: “The UK resident person is required to complete another online property disposal return.” The statutory same-day exception is different: where the conditions apply, “the person must make and deliver a single return with respect to the disposals.” In practice, diarise completion dates, not exchange dates or the tax-year end. Abodient can hold each property's purchase price and valuation record, which matters when working out the gain on each disposal separately within its own 60-day window.

Is capital gains tax different on commercial property?

Capital gains tax rates are no longer different for commercial and residential property disposals by individuals: from 6 April 2026, both sit in the same 18%/24% CGT rate structure, while the 60-day reporting duty remains different because it does not apply to purely commercial property. HMRC’s 2024 tax note explains why the old separate residential-property rate is gone: “This measure means that it will no longer be necessary to specify separate rates for this purpose.” The Finance Act change applies “in relation to disposals made on or after 30 October 2024.” Another common trap is Business Asset Disposal Relief: rival pages still quote 10%, but GOV.UK says: “From 6 April 2026 you’ll pay 18% if you’re a sole trader, partnership or trustee and your gains qualify for Business Asset Disposal Relief.” For reporting, a purely non-residential commercial property sale is not in the UK resident 60-day property account; Saffery’s summary is right that “The 60-day reporting and paying rules don’t apply to disposals of non-residential property or non-UK property.”

Will capital gains tax rates change in the Budget?

No current law changes the main 18%/24% CGT rates at the Autumn Budget 2026, although a Budget could announce a change and make it immediate if Parliament approves the required motions. The current statutory rate provision is in force: “Taxation of Chargeable Gains Act 1992, Section 1H is up to date with all changes known to be in force on or before 26 August 2026.” The Budget date itself is known — “The Budget will be held on 28 October 2026” — but that does not by itself change capital gains tax rates. The House of Commons Library explains that “All tax measures announced in the Budget are given permanent legal effect in the Finance Bill,” and that “Immediate changes to taxation happen if MPs approve motions under the Provisional Collection of Taxes Act 1968.” The last main-rate rise applied from Budget day in 2024, so pre-Budget uncertainty is real; the answer is still that today’s rental-property CGT rates are 18% and 24% until the law changes.

Last reviewed August 2026.

Sources

• Taxation of Chargeable Gains Act 1992 s.1H — “Chargeable gains accruing in a tax year to an individual are charged to capital gains tax at a rate of 18% or 24%.” Source
• GOV.UK, Capital Gains Tax rates — “If you’re a higher or additional rate taxpayer, you’ll pay 24% on your gains from 6 April 2026.” Source
• GOV.UK, Capital Gains Tax rates — “If this amount is within the basic Income Tax band, you’ll pay 18% on your gains made from 6 April 2026.” Source
• Taxation of Chargeable Gains Act 1992 s.1J — “In the application of section 1I in the case of any individual it is to be assumed that the individual is not a Scottish or Welsh taxpayer.” Source
• Taxation of Chargeable Gains Act 1992 s.1 — “As a result of section 4 of CTA 2009, capital gains tax is not charged on gains accruing to a company, but corporation tax is chargeable instead in accordance with—” Source
• Taxation of Chargeable Gains Act 1992 s.1K — “The annual exempt amount for a tax year is £3,000.” Source
• Finance Act 2023 s.8 — “The amendment made by subsection (4) has effect for the tax year 2024-25 and subsequent tax years.” Source
• HMRC, Capital Gains Tax annual exempt amount — “For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees.” Source
• GOV.UK, Work out if you need to pay Capital Gains Tax — “You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.” Source
• Finance Act 2019 Sch.2 para.3 — “(b)must deliver the return to an officer of Revenue and Customs on or before the 60th day following the day of the completion of the disposal.” Source
• GOV.UK, Report and pay Capital Gains Tax on UK property — “You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale of the property.” Source
• Finance Act 2019 Sch.2 para.6 — “The amount is payable on the filing date for the return.” Source
• HMRC Capital Gains Manual CG-APP18-110 — “There is no need to report any disposal where there is no CGT liability (although users can report such disposals voluntarily).” Source
• Finance Act 2009 Sch.55 para.3 — “P is liable to a penalty under this paragraph of £100.” Source
• GOV.UK, Reporting and paying Capital Gains Tax — “You must report all sales of UK property or land(residential and non-residential) if you’re not a UK resident, even if you have no tax to pay.” Source
• HMRC Capital Gains Manual CG-APP18-256 — “The UK resident person is required to complete another online property disposal return.” Source
• Finance Act 2019 Sch.2 — “the person must make and deliver a single return with respect to the disposals.” Source
• Finance Act 2025 s.7 — “The amendments made by this section and that Schedule have effect in relation to disposals made on or after 30 October 2024.” Source
• HMRC, Capital Gains Tax: rates of tax — “This measure means that it will no longer be necessary to specify separate rates for this purpose.” Source
• GOV.UK, Capital Gains Tax rates — “From 6 April 2026 you’ll pay 18% if you’re a sole trader, partnership or trustee and your gains qualify for Business Asset Disposal Relief.” Source
• Saffery, 60-day CGT reporting — “The 60-day reporting and paying rules don’t apply to disposals of non-residential property or non-UK property.” Source
• Taxation of Chargeable Gains Act 1992 s.1H status line — “Taxation of Chargeable Gains Act 1992, Section 1H is up to date with all changes known to be in force on or before 26 August 2026.” Source
• GOV.UK, Chancellor letter to Treasury Select Committee: Budget 2026 date — “The Budget will be held on 28 October 2026.” Source
• House of Commons Library, What is the Budget? — “All tax measures announced in the Budget are given permanent legal effect in the Finance Bill.” Source
• House of Commons Library, What is the Budget? — “Immediate changes to taxation happen if MPs approve motions under the Provisional Collection of Taxes Act 1968.” Source