Residential Property Taxes

Stamp Duty & CGT: The Property Tax Checklist for UK Landlords in 2026

The rules around residential property taxation in the UK have shifted considerably over the past 18 months. If you own a buy-to-let, a second home, or commercial property with a residential element, here is what the current landscape looks like — and where the planning opportunities still exist.

Capital Gains Tax on Residential Property

The CGT higher rate on residential property was reduced from 28% to 24% in October 2024. The basic rate remains at 18%. While this is a welcome reduction, the annual CGT exemption has been slashed to just £3,000 — down from £12,300 in 2022/23 — meaning almost every property disposal now generates a taxable gain.

CGT on residential property is now 18%/24% and SDLT surcharges have risen. Here's the updated property tax checklist every UK landlord needs in 2026.

Example: A higher-rate taxpayer selling a buy-to-let with a £120,000 gain now pays £28,800 in CGT — a saving of £4,800 compared to the old 28% rate. That saving is real, but only if the disposal is timed and structured correctly.​

Stamp Duty Land Tax (SDLT) — Key Rates for 2026

• Second homes and buy-to-let: A 5% surcharge applies on top of standard SDLT rates​

• Non-UK residents: An additional 2% surcharge applies over and above all other rates​

• First-time buyers: Zero SDLT up to £300,000; 5% on the £300,001–£500,000 portion​

• Corporate buyers of residential property above £500,000: 17% flat rate unless a relief applies​

Three planning points before you sell or buy:

1. Timing your disposal around income levels matters — selling in a year where your income is lower keeps more of the gain within the 18% band rather than 24%

2. Principal Private Residence (PPR) Relief still exists but the "final period" exemption is now only 9 months, not 18 — if you've moved out of a former home, the clock is ticking

3. Joint ownership transfers between spouses before disposal can double the use of the basic rate band — a straightforward piece of planning that is often overlooked

Our advice: If you're considering selling a residential property in 2026, a pre-disposal review with your accountant could reduce your CGT bill significantly. Don't file first and ask questions later.