What Are the CGT Rates on UK Property in 2026/27? 18% and 24% Under TCGA 1992 s.1H

Capital Gains Tax on UK residential property in 2026/27 is charged at 18% on the slice of the gain that falls within the unused basic-rate band and 24% on the slice above it. The rate structure is set in TCGA 1992 s.1H as substituted by Finance Act 2024, with the same 18% / 24% rates applying uniformly to non-residential gains for individuals since 30 October 2024. The annual exempt amount is £3,000 for 2026/27 (£1,500 for most trusts), reduced from £6,000 in 2023/24 and £12,300 in 2022/23. This page sets out the rate structure, walks through five worked planning examples, and locates the rates within the wider reporting framework.

For the broader CGT framework (acquisition cost mechanics, allowable expenditure, the calculation methodology) see our CGT on UK property complete guide and the CGT calculation step-by-step worked examples page. For the 60-day reporting and Self Assessment interaction see our CGT payment deadlines guide.

UK CGT rates on property 2026/27 at a glance

Taxpayer	Property type	Rate within basic-rate band	Rate above basic-rate band	Annual exempt amount
Individual (UK resident)	Residential	18%	24%	£3,000
Individual (UK resident)	Non-residential / commercial	18%	24%	£3,000
Trustee (most trusts)	Any	24% throughout (no basic-rate slice)	24%	£1,500
Personal representative of deceased estate	Any	24% throughout	24%	£3,000 (year of death and following two)
UK resident company	Any	Corporation Tax at 19% / 25% with marginal relief; no AEA	Same	None
Non-UK resident individual	UK land (any)	18%	24%	£3,000
Non-UK resident company	UK land (any)	Corporation Tax (since April 2019); no CGT	Same	None
BADR-qualifying disposal (rare for landlords)	Trading business asset	18% flat (from 6 April 2026; was 14% 2025/26; was 10% pre-2025/26)	Same; capped at £1M lifetime	£3,000

The 28% rate that previously applied to higher-rate residential disposals was abolished from 30 October 2024 (Autumn Budget 2024) and replaced with the 24% rate. Any commentary still citing 28% is pre-Autumn Budget 2024 and is no longer current.

The rate structure under TCGA 1992 s.1H and s.1I

TCGA 1992 s.1H sets the headline rates: "Chargeable gains accruing in a tax year to an individual are charged to capital gains tax at a rate of 18% or 24%." Section 1I governs which rate applies to which slice of the gain, by reference to whether the gain (when added to the individual's other income) falls within the basic-rate band or above it. The mechanic is:

1. Compute total income from all sources (employment, pension, self-employment, rental, savings, dividends), apply the personal allowance, and determine how much of the basic-rate band (£37,700 from £12,571 to £50,270 in 2026/27) is already used by other income.
2. Compute the chargeable gain after allowable costs, reliefs and the annual exempt amount.
3. Allocate the gain to bands. Any unused portion of the basic-rate band is filled by the gain at 18%. The remainder of the gain falls in the higher-rate / additional-rate territory and is taxed at 24%.

The rate is therefore not a function of the property type (residential vs commercial, since 30 October 2024) nor of the taxpayer's marginal income tax band in isolation. It is a function of where the gain sits in the band structure once total income has been allocated. A higher-rate-employed taxpayer pays 24% on the full gain because their basic-rate band is already used; a basic-rate-employed taxpayer pays a mixture of 18% and 24% depending on how much basic-rate capacity remains.

The corresponding consumer-facing summary of the rates is on the gov.uk Capital Gains Tax rates page, which is the authority cross-reference for taxpayers who want to verify the figures independently.

How your tax band determines the slice rate: worked example 1

Mike has £35,000 employment income and disposes of a buy-to-let in 2026/27 with a chargeable gain (after AEA) of £40,000. The calculation is:

• Personal allowance used by employment income: £12,570 (no remaining PA to apply against the gain)
• Basic-rate band capacity: £50,270 − £35,000 = £15,270 of basic-rate band remaining
• Gain allocated to 18% slice (basic-rate band): £15,270 at 18% = £2,749
• Gain allocated to 24% slice (higher-rate band): (£40,000 − £15,270) = £24,730 at 24% = £5,935
• Total CGT: £8,684

If Mike's employment income had been £45,000 instead (closer to the higher-rate threshold), the basic-rate band remaining would have been £5,270 and the 18% slice would have been £5,270 × 18% = £949, with the remaining £34,730 at 24% = £8,335, total CGT £9,284 (a £600 increase for an income shift of £10,000 that did not itself trigger any higher-rate income tax).

Worked example 2: higher-rate taxpayer, full 24% slice

Priya has £85,000 employment income and disposes of a buy-to-let in 2026/27 with a chargeable gain (after AEA) of £55,000. Her employment income already exceeds the basic-rate threshold (£50,270), so the full gain falls in the higher-rate territory. The calculation:

• Basic-rate band capacity for the gain: £0 (employment income already used it)
• Entire gain at 24%: £55,000 × 24% = £13,200
• Total CGT: £13,200

There is no rate-slice mechanic to optimise for higher-rate taxpayers: the rate is flat 24% on the gain. The planning lever is the AEA + relief structure + timing of disposal, not the rate split.

Worked example 3: jointly owned property, doubling the AEA

Sara and Tom jointly own a buy-to-let (50/50 beneficial ownership). They dispose of it in 2026/27 with a total gross gain of £80,000. Sara's other income is £30,000; Tom's is £55,000. Each owner is taxed on £40,000 of the gain.

Sara's position:

• Gain after AEA: £40,000 − £3,000 = £37,000
• Basic-rate band remaining: £50,270 − £30,000 = £20,270 at 18% = £3,649
• Remainder at 24%: £16,730 at 24% = £4,015
• Sara's CGT: £7,664

Tom's position:

• Gain after AEA: £40,000 − £3,000 = £37,000
• Basic-rate band remaining: £0 (employment income at £55,000 already exceeds £50,270)
• Entire gain at 24%: £37,000 × 24% = £8,880
• Tom's CGT: £8,880

Combined CGT: £16,544

The same disposal held entirely by Tom personally would have produced a single £80,000 gross gain, single £3,000 AEA, and (because Tom's other income leaves no basic-rate capacity) full 24% on £77,000 = £18,480 CGT. Joint ownership saves £1,936 on this specific fact pattern, driven partly by the second £3,000 AEA (worth £720 at 24%) and partly by Sara's £20,270 of unused basic-rate band converting £20,270 × (24% − 18%) = £1,216 of tax from 24% to 18% slice. The total saving (£1,936) is the sum of these two effects.

Annual exempt amount and the planning value

The annual exempt amount is £3,000 per individual for 2026/27 (£1,500 for most trusts). Each individual gets their own AEA every tax year; spouses and civil partners each have their own AEA so jointly held property effectively has £6,000 of CGT-free gain before tax applies. Unused AEA cannot be carried forward.

The AEA reduction from £12,300 (2022/23) to £6,000 (2023/24) to £3,000 (2024/25 onwards) has materially reduced the planning value of staggering disposals across tax years. A £30,000 gain in two halves across two tax years used to be effectively £6,000 of AEA × 2 plus a smaller taxable base; today it is £3,000 × 2 = £6,000 with the remaining £24,000 taxable. The 5-year-to-2-year-of-AEA-cover compression means staggering disposals saves less than it used to, and the planning value of pre-disposal spouse transfers (which double the AEA on a single disposal) has gone up relative to staggering.

CGT for non-UK residents and companies

Non-UK resident individuals pay CGT at the standard 18% / 24% rates on UK residential property gains accruing from 6 April 2015 (the residential rebasing date) and on UK non-residential property gains accruing from 6 April 2019 (non-residential rebasing). Non-residents must file a 60-day CGT on UK property return for every UK land disposal regardless of whether tax is due, a stricter rule than the UK-resident position (where the 60-day return is only required where tax is due). Non-resident companies are within Corporation Tax on UK property gains since 6 April 2019, not CGT; they file via the CT600.

UK-resident property-investment companies pay Corporation Tax on chargeable gains rather than CGT. The rates are 19% on profits up to £50,000 (small profits rate) and 25% above £250,000 (main rate), with marginal relief tapering between. Most property-investment SPVs (BTL-only companies) are excluded from the small profits rate by the Close Investment-Holding Company rules in CTA 2010 s.18N, so investment-only company gains are typically taxed at the 25% main rate regardless of profit level. Indexation allowance (frozen at December 2017 RPI since April 2018) can still apply to companies' pre-2018 base costs. For new acquisitions there is no indexation. Mechanics in our BTL limited company complete guide.

The calculation: what enters the chargeable gain

The chargeable gain is computed as: net disposal proceeds minus base cost minus reliefs minus the annual exempt amount.

Net disposal proceeds: sale price minus incidental costs of disposal (estate agent fees, legal fees on sale, EPC and sale-specific survey costs, advertising costs).

Base cost: acquisition cost (purchase price) plus incidental costs of acquisition (SDLT including additional dwellings surcharge, purchase legal fees, survey costs) plus capital enhancement expenditure (extensions, new bathroom suites, conversions). Revenue repairs (boiler replacement like-for-like, fixing leaks, repainting) are NOT base cost items; they are income tax expenses claimed against rental profit during ownership.

Reliefs: Private Residence Relief on a time-apportioned basis under TCGA 1992 s.222 where the property was at some point the owner's main residence (the final 9 months of ownership always qualify as deemed occupation); Lettings Relief under TCGA 1992 s.223B (significantly restricted since 6 April 2020, only available where the owner shared occupation with the tenant); spouse no-gain-no-loss transfer under s.58 (pre-disposal); incorporation relief under s.162 in limited circumstances; rollover relief under s.152 (rare for residential property, which is investment not trading).

Worked example 4: BTL with PRR period. Joel bought a BTL in 2014 for £180,000 and sold it in 2026/27 for £290,000. He lived in it as his main residence for the first 4 years of ownership (Jan 2014 to Dec 2017), then let it out for the remaining 8 years (Jan 2018 to Dec 2025). His incidental costs total £15,000 (£10,000 SDLT and legal on purchase, £5,000 estate agent and legal on sale). He has no capital improvements and no capital losses. His other 2026/27 income is £70,000.

• Gross gain: £290,000 − £180,000 − £15,000 = £95,000
• PRR fraction: 48 months actual residence + 9 months deemed final-period occupation = 57 months out of 144 months total ownership = 39.6%
• PRR amount: £95,000 × 39.6% = £37,620 exempt
• Chargeable gain after PRR: £57,380
• Less AEA: £57,380 − £3,000 = £54,380 taxable
• Joel is higher-rate-employed (no basic-rate band capacity): £54,380 × 24% = £13,051 CGT

If Joel had not been able to claim PRR (the property was never his main residence), the full £92,000 (£95,000 − £3,000) would be taxable at 24% = £22,080. PRR saved £9,029 on the disposal.

Business Asset Disposal Relief: where it applies (and where it does not)

BADR under TCGA 1992 s.169N reduces CGT to a flat rate (18% from 6 April 2026; was 14% from 6 April 2025; was 10% pre-6 April 2025) on qualifying business asset disposals, capped at a £1,000,000 lifetime allowance. BADR is structured around qualifying business assets (the property must be used in a trade by the claimant, not held as a passive investment).

Standard residential buy-to-let does NOT qualify for BADR. The Pawson v HMRC [2013] UKUT 050 (TCC) trading-vs-investment line places passive rent collection on the investment side, even where management is active. Furnished Holiday Lettings did qualify until the FHL regime was abolished on 6 April 2025 by Finance Act 2025 Schedule 5; from that date, former FHL property no longer qualifies. The narrow remaining route for property-related BADR is genuine property development trading (work-in-progress at cessation), or serviced accommodation with substantial services that crosses the Pawson trading line. Most landlords do not qualify and should not assume BADR is available.

Planning strategies and timing

Five planning levers commonly used on residential CGT disposals in 2026/27:

1. Pre-disposal spouse transfer (TCGA 1992 s.58). Transfer part-share of the property to a lower-income spouse before sale to use both AEAs and move part of the gain into the spouse's basic-rate slice. Demonstrated in worked example 3 above.
2. Timing relative to disposal-year income. Where the next year's income is expected to be materially lower (retirement, sabbatical, career break, business cessation), deferring disposal into that year can move more of the gain into the 18% slice. The cost is interest on tax not deferred (CGT is paid through the 60-day return based on the disposal-year position) and the risk that rates change between years.
3. PRR optimisation. Where a property has been a main residence at some point, document the residence periods rigorously: council tax records, utility bills, electoral roll entries, GP registration, post addressed to the property. The deemed-occupation rules can extend qualifying periods beyond actual residence (final 9 months always; up to 4 years for working away from home; up to 3 years for any reason where actual occupation followed). Mis-applying PRR is one of the most common 60-day return errors.
4. Capital loss harvesting. Capital losses can be set against capital gains in the same tax year (compulsory offset before the AEA), with any unused balance carried forward indefinitely. Realising a loss in the disposal year can offset the gain pound-for-pound. Losses cannot be carried back (except in narrow circumstances on death).
5. Incorporation vs personal sale. Where the seller is considering incorporating the wider portfolio, the disposal mechanics differ materially between selling personally (18% / 24% with £3,000 AEA) and selling via the company post-incorporation (CT at 19% / 25% with no AEA, plus dividend tax to extract). The breakeven depends on band position and reinvestment plans. Modelled in our BTL limited company guide.

Worked example 5: combining AEA, spouse transfer and timing

Tom is a higher-rate-employed landlord (£90,000 salary) with a sole-name BTL purchased in 2010 for £150,000. Current 2026/27 market value: £260,000. His incidental costs total £15,000. He is considering disposal in 2026/27. His spouse Sarah has £25,000 employment income.

Scenario A: sell in 2026/27 from sole name.

• Gain: £260,000 − £150,000 − £15,000 = £95,000
• Less AEA: £95,000 − £3,000 = £92,000
• Tom higher-rate-employed; entire gain at 24%: £92,000 × 24% = £22,080

Scenario B: pre-sale 50/50 spouse transfer to Sarah, then joint sale in 2026/27.

• Each owner's gain after AEA: (£95,000 / 2) − £3,000 = £44,500 taxable
• Tom's £44,500 at 24% (no basic-rate capacity): £10,680
• Sarah's basic-rate capacity: £50,270 − £25,000 = £25,270 at 18% = £4,549
• Sarah's remainder at 24%: £19,230 × 24% = £4,615
• Sarah's CGT: £9,164
• Combined: £10,680 + £9,164 = £19,844

Scenario B saves £22,080 − £19,844 = £2,236 on this fact pattern. The s.58 spouse transfer is no-gain-no-loss so the transfer itself is CGT-neutral; the saving comes from the second AEA and Sarah's basic-rate band capacity. The transfer needs to be a genuine transfer of beneficial ownership before disposal, evidenced by an updated deed of trust or solicitor-drafted declaration of trust; HMRC look through paper-only arrangements completed at exchange.

Where these rates fit within the wider 2026/27 framework

The CGT rate structure operates independently of three adjacent regimes that often surface in the same disposal:

• The April 2027 property income tax surcharge (now enacted via Finance Act 2026 c.11 s.7, with 22% / 42% / 47% rates from 6 April 2027 for tax year 2027-28 and subsequent years) applies to rental income, not to capital gains. CGT remains 18% / 24% throughout. The disposal year's income (including rental profit, which from 2027-28 onwards uses the new property income rates) does affect the basic-rate band fill for CGT slice allocation, but the CGT rate structure itself is unchanged. Mechanics of the April 2027 surcharge are in our April 2027 property tax rates and Section 24 page.
• The 60-day CGT on UK property reporting regime (under TCGA 1992 Sch 1A) applies to all in-scope disposals; the rate calculation feeds the figure on the return. UK residents file where CGT is due; non-UK residents file for every UK land disposal regardless of whether tax is due. Full mechanics in our CGT payment deadlines guide.
• Self Assessment. The same disposal is reported again on the SA108 Capital Gains pages of the SA100, with tax paid through the 60-day return offset against the final liability. The SA return is the definitive figure; any balancing payment or refund is reconciled by 31 January following the tax year.

Reporting, deadlines and what HMRC expects

For UK residents disposing of UK residential property in 2026/27:

• 60-day CGT on UK property return: file and pay within 60 days of completion where CGT is due (under TCGA 1992 Sch 1A as amended by FA 2022).
• Self Assessment SA108: report the same disposal again on the Self Assessment return, due 31 October 2027 (paper) or 31 January 2028 (online) for 2026/27 disposals.
• Balancing payment: any additional CGT due (because actual income for the year pushed more of the gain into the higher-rate slice than estimated on the 60-day return) is due by 31 January 2028 for 2026/27 disposals.
• Records retention: at least five years and 10 months after the end of the tax year (HMRC standard for landlords); in practice retain for six years after disposal.

The 60-day window is harshly enforced: a £100 fixed late-filing penalty applies from day 61 regardless of whether tax is eventually due, with daily penalties from day 91. Filing the 60-day return late but with the right tax figures is worse than filing on time with reasonable estimates and amending later (the amendment route is open for 12 months after the original filing deadline).

What changed from previous years and what to ignore in older commentary

Three rate-history points often confuse readers researching this topic:

• Pre-30 October 2024: residential CGT was 18% / 28%, and the residential / non-residential split was operative (non-residential at 10% / 20%). The 28% rate is gone; the residential / non-residential split is gone (both now at 18% / 24%). Any commentary citing 28% as a current rate is stale.
• Annual exempt amount reductions: £12,300 (2022/23) → £6,000 (2023/24) → £3,000 (2024/25 onwards). The £6,000 and £12,300 figures still appear in carry-over commentary; the current 2026/27 figure is £3,000.
• BADR rate progression: 10% (pre-6 April 2025) → 14% (from 6 April 2025) → 18% (from 6 April 2026). The 10% rate is no longer current. The £1 million lifetime cap is unchanged from the post-Finance Act 2020 position.

For taxpayers cross-checking against authority sources, the live gov.uk page at gov.uk/capital-gains-tax/rates confirms the 18% / 24% structure for 2026/27. HMRC's Capital Gains Manual provides the technical depth for practitioners (the contents page is at gov.uk/hmrc-internal-manuals/capital-gains-manual).