Capital Gains Tax receipts reached just under £24.3 billion in the 2025-26 tax year, according to HMRC’s latest annual receipts bulletin, with the total up 77 percent on the previous year. For landlords selling rental property, the figures are another sign that tax is taking a bigger bite out of exit decisions.
The jump follows two policy changes that matter directly to property investors: the annual CGT allowance has been cut sharply in recent years, and rates were increased in October 2024. That means more landlords are paying the tax and more of each gain is being taxed.
For landlords weighing a sale in 2026, the timing matters now. Many smaller investors have already been hit by the loss of furnished holiday lettings tax relief, tighter compliance costs and higher financing bills. A much larger CGT take suggests HMRC is capturing more of the value released as owners reshape or shrink portfolios.
Why the tax take has risen so sharply
HMRC’s annual bulletin covers provisional receipts for 2025-26 across the taxes it collects. In the case of CGT, the headline rise reflects both policy and behaviour. The allowance is now only £3,000, far below the level landlords were used to only a few years ago, so modest gains that once sat below the threshold can now trigger a bill.
Rates also moved higher in late 2024. For many landlords, that has changed the maths of whether to sell one property, transfer assets within a wider family plan or hold for longer and refinance instead. Where gains have built up over many years, the tax due can now be large enough to affect whether disposal still looks worthwhile.
This follows Landlord Knowledge’s February report on record CGT receipts from landlord sales, which highlighted how tax was becoming a bigger factor in portfolio exits. The latest HMRC figures suggest that pressure has intensified rather than eased.
What landlords should watch before selling
Landlords are not all exiting for the same reason, but tax is increasingly part of the calculation alongside compliance, mortgage pricing and local demand. Owners with long-held properties and low base costs are especially exposed, because a bigger share of any sale proceeds may now be lost before funds can be recycled into a new purchase or used to clear debt.
That makes planning more important. Investors considering a sale may need to model the net proceeds after tax, legal costs and any mortgage redemption charges, rather than focusing on the headline sale price alone. Those who are undecided may also watch how future Budgets treat property gains, especially if the government keeps looking for revenue from housing wealth. HMRC’s annual tax receipts bulletin gives the clearest public snapshot of how quickly the CGT take is growing.
There is also a market angle. If more landlords decide the post-tax return on a sale is still acceptable, supply could rise further in some areas. But if owners decide the tax hit is too severe, more may hold, refinance or pass properties on within longer-term estate plans instead.
What this means for landlords
- If you’re considering a sale: calculate the CGT bill early, because the allowance is now small enough to catch gains that once sat outside the tax net.
- Watch for: any Autumn Budget changes to property taxation or reliefs, which could alter exit timing again.
- Bottom line: a strong sale price does not automatically mean a strong outcome once tax is deducted.
Editor’s view
Landlords do not need another reminder that tax has become a structural risk in UK property investment. The sharper point here is that exits are no longer judged on price alone – they are judged on what is left after HMRC has taken its share.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 June 2026
Sources: HMRC
Related reading: HMRC confirms holiday-let tax reliefs have gone
