Capital Gains Tax on Property in Scotland 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.

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%. A Scottish landlord with employment income of £45,000 (above the Scottish higher-rate threshold of £43,662) has no basic-rate band remaining and pays 24% on the entire gain. The Scottish rate bands for income tax do not directly affect CGT rates, but they determine how much basic-rate band is available.

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.