The Chancellor announced a 4% reduction in the higher rate of Capital Gains Tax (CGT) on residential property gains, decreasing from 28% to 24% for disposals on or after 6 April 2024.

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 CGT: Residential Property

  • For residential property gains occuring on or after 6 April 2024 the higher rate of Capital Gains Tax (CGT) will reduce to 24%. 
  • The lower CGT rate will remain at 18%. 
  • Private Residence Relief (PRR) will continue to apply on qualifying disposals of main residences.

See CGT:  Residential Property gains (subscriber guide)

Topical guides on this topic

Budget 2024: At a glance

Allowances & rates: Capital Gains Tax (CGT)
What are capital gains? What is Capital Gains Tax (CGT)? What are the Capital Gains Tax rates, bands, reliefs and exemptions?

CGT:  Residential Property gains
The definition of 'Residential Property' is important for Capital Gains Tax (CGT) purposes when considering how a gain is reported, when tax is paid and the rates of tax that apply. What is a Residential Property gain?   

PRR: Private Residence Relief
What is Private Residence relief (PRR)? What are the qualifying conditions? Can you claim relief on two homes? How do you claim PRR? Can you claim PRR if you develop your garden?

External links

Policy paper Capital Gains Tax: changes to the higher rate of tax on residential property disposals