Capital Gains Tax Scotland: Selling Property in 2026/27

Capital gains tax on UK residential property in 2026/27 is 18% for gains falling within the basic-rate band and 24% for higher-rate gains. Scottish landlords selling buy-to-let or second residential properties must pay CGT on the gain after deducting costs and the annual exempt amount (£3,000 for 2026/27). A 60-day CGT return and payment must also be filed with HMRC within 60 days of completion — before the annual self-assessment deadline.

CGT rates on residential property

• Basic-rate CGT (gains within the basic-rate band): 18%.

• Higher-rate CGT (gains above the basic-rate band): 24%.

• Annual exempt amount: £3,000 (2026/27).

• Main residence exemption: full relief on the principal private residence.

Does Scotland have its own capital gains tax?

No. Income tax rates and bands are devolved to the Scottish Parliament, but capital gains tax is not. Scottish taxpayers pay the same CGT rates, get the same £3,000 annual exempt amount and follow the same HMRC reporting rules as the rest of the UK. The one Scotland-specific cost in a property sale is on the purchase side: Land and Buildings Transaction Tax (LBTT) paid when the property was bought, which counts as part of its acquisition cost.

How the basic and higher rate applies

To determine the applicable rate, a taxpayer adds the gain to their taxable income for the year. The gain uses any remaining basic-rate band first — taxed at 18% — with the excess taxed at 24%. Because CGT is not devolved, the test uses the UK basic-rate band of £37,700 above the personal allowance, not the Scottish income tax bands. A Scottish landlord with employment income of £45,000 pays Scottish higher-rate income tax on part of that salary (the Scottish higher rate starts at £43,662), yet still has £5,270 of UK basic-rate band left for CGT: the first £5,270 of the taxable gain is taxed at 18% and the rest at 24%.

The 60-day CGT return

Following the sale of a UK residential property that is not a main residence, the seller must file a residential property return and pay any CGT due within 60 days of completion. Failure to file on time attracts a fixed penalty. The 60-day payment is a payment on account — the final CGT liability is settled through self-assessment, where any overpayment is refunded or underpayment collected.

Costs that reduce the gain

• Acquisition cost including LBTT and legal fees.

• Capital improvement expenditure (not maintenance or repair).

• Costs of disposal including estate agent and legal fees.

• Capital allowances pool adjustments where applicable.

Private residence relief

Where a Scottish taxpayer has lived in the property as their main residence for part of the ownership period, private residence relief applies proportionally. The final nine months of ownership always qualify for relief regardless of occupation. Lettings relief has been substantially reduced and only applies in limited circumstances where the owner also lived in the property during the let.

Use our capital gains tax calculator to estimate CGT on your Scottish property sale, and contact Countify for help with the 60-day return and self-assessment planning.