On 1 July 2027, capital gains tax changes for the first time in a generation: the flat 50% discount gives way to CPI indexation plus a 30% minimum rate on affected gains. That’s now just over ten months away — and because the contract date is what counts for CGT, investors holding large long-term gains are quietly doing the maths on timing. Here’s the sober version.
What actually changes
- Today: hold an asset 12+ months, pay tax on half the gain.
- For gains arising after 1 July 2027: tax the real (inflation-adjusted) gain instead, with a 30% minimum rate. Full detail in our reform guide.
- Grandfathering and choices: gains realised before the start date sit under today’s rules, and new builds keep a choice afterwards.
Who should actually be paying attention
This matters most for investors sitting on large gains built over many years who were already planning to sell in the next couple of years — for them, contract timing either side of 30 June 2027 can change the tax bill materially. It matters far less if you’re holding long-term, if your gain is modest, or if your property is a new build with the choice preserved.
The traps in panic-selling
Three costs eat the tax saving fast: transaction costs (agent, legals, marketing), re-entry costs (stamp duty on the next asset), and crowd risk — if many investors aim at the same pre-July-2027 window, buyers know it. Tax tails should not wag investment dogs.
The alternatives to selling
Need the equity, not the exit? A refinance or equity release gets capital out without a CGT event at all. Upgrading the portfolio? Bridging sequences a sale and purchase cleanly. Both are lending conversations we run alongside your accountant’s tax modelling.
Common questions
Does the contract date or settlement date count for CGT?
The contract (exchange) date. A sale contracted before 1 July 2027 falls under today's rules even if settlement happens after — and one contracted after falls under the new rules. Confirm your specific timing with your accountant; this is exactly the kind of detail that shouldn't ride on a blog post.
If I sell before 1 July 2027, do I keep the 50% discount?
Gains realised under contracts dated before 1 July 2027 are taxed under the current rules, including the 50% discount for assets held over 12 months. From that date, the discount is replaced by CPI cost-base indexation plus a 30% minimum tax rate on the gain for affected assets.
Do new builds keep the discount after 2027?
Newly built homes and build-to-rent get a choice under the new rules — the legislation deliberately favours new supply. That's part of why new builds have become the tax-favoured purchase for investors.
Should I sell just to beat the change?
Usually not on tax grounds alone. Selling costs (agent, legals, and duty on whatever you buy next) routinely exceed the tax difference, and a rushed sale into a crowded window can cost more than it saves. The right move depends on your gain, your bracket and your plans — a job for your accountant, with us on the lending side.
General information only — not tax advice. Whether and when to sell is a decision for you and your registered tax agent or financial adviser; we arrange the lending side. Current at 18 August 2026.
