Capital Gains Tax on selling a rental property

Selling a rental property usually triggers a Capital Gains Tax liability, and UK residential property sales come with a notably short reporting window compared to other tax matters.

What counts as your gain

Broadly, your gain is the sale price less what you paid, less certain allowable costs such as purchase and sale fees and qualifying improvements — not simply the difference in property value.

The 60-day reporting deadline

Unlike most tax matters that wait for your annual Self-Assessment return, UK residential property sales that create a CGT liability must be reported and paid within 60 days of completion.

Reliefs that might apply

If the property was ever your main home for part of the ownership period, partial relief may apply — this is a common area where landlords underclaim without professional advice.

Our advice

Get a CGT estimate before you complete a sale, not after — it affects your net proceeds and the 60-day deadline leaves little room for a rushed calculation.