4% cut in Capital Gains Tax for residential property sales

Sales of residential property are subject to a separate tax reporting regime known as 60 day CGT reporting. 

This regime of reporting and paying capital gains tax was introduced in April 2020.  Sales of residential properties resulting in a taxable gain must be reported to HMRC and tax paid within 60 days of settlement.  

Changes from April 2024

There is no change to the 18 % lower rate of capital gains tax on the sale of residential property.

The new higher rate of capital gains tax on sales of residential property will be reduced from 28% to 24%. It is hoped that this rate cut could boost sales of houses to ease the housing shortages.  

This cut in higher rate goes some way to offset the reduction in the CGT personal allowance which will be just £3,000 for 2024/24. 

Taxable gains more than £24,000 will be charged less CGT in 2024/25 than in 2023/24 as a result of the lower exemption and tax rate.