Quick answer
Selling a rental property can trigger capital gains tax at 18% or 24% on the gain above the £3,000 annual exempt amount. You must report and pay the tax on UK residential property within 60 days of completion using HMRC’s online service.
Updated October 2026 · Figures based on 2025/26 rates
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How the gain is calculated
Sale price minus purchase price, minus allowable costs such as solicitor and estate agent fees, stamp duty paid when buying and capital improvement costs.
Rates and the exempt amount
Gains are taxed at 18% within the basic-rate band and 24% above it. Each person has an annual exempt amount of £3,000 for 2025/26.
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The 60-day deadline
You must file a UK property return and pay estimated tax within 60 days of completion. Missing it can cause penalties and interest, even if you also report the gain on Self Assessment.
Reducing the bill
Use both spouses’ allowances, deduct all allowable costs, and consider the timing of the sale across tax years.
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Frequently asked questions
Do I still report the sale on my tax return?
Yes. The disposal is reported on your Self Assessment return, and the 60-day payment is credited.
What if I made a loss?
Losses can be reported to HMRC and carried forward against future gains.
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