Buy-to-let properties are generally anticipated to increase in value, so when they are held and subsequently sold by individuals, capital gains tax (CGT) should be considered. The purpose of this article is to describe the main rules that determine the CGT liability, if any, that will arise on the disposal of a buy-to-let property.

Companies that make gains may be subject to corporation tax (or possibly ATED-related CGT), but these are beyond the scope of this article. Ordinarily, only UK resident individuals are subject to UK CGT; however, there is one scenario whereby gains by non-UK resident individuals will come into charge and this is described towards the end of article.