Why does the 5 April tax year end matter to landlords?
The UK tax year ends on 5 April. For landlords selling property, which side of that date contracts are exchanged decides which year's allowances and rates apply to the gain. Planning a sale around the year end can make better use of allowances, but should not drive a bad commercial decision.
Read more in our guide: Landlord Exit Calculator
Key Dates for Landlords
| Date | What happens |
|---|---|
| 5 April | Tax year ends; unused annual exempt amount is lost |
| 6 April | New tax year with a new annual exempt amount and basic-rate band |
| 60 days after completion | Report and pay CGT on UK residential property |
| 31 July | Second payment on account of income tax |
| 5 October | Deadline to register for Self Assessment if new to it |
| 31 January | Online Self Assessment return and balancing payment due, plus first payment on account |
| From 6 April 2026 | Making Tax Digital for income tax for landlords and sole traders with qualifying income over £50,000 (£30,000 from April 2027, £20,000 from April 2028) |
Timing a Sale Around the Year End
For Capital Gains Tax, the date of disposal is normally the date contracts are exchanged. A sale exchanged on 3 April falls in the old tax year; one exchanged on 7 April falls in the new one, with a fresh annual exempt amount and basic-rate band. Pushing exchange past 5 April also delays when the gain goes on a Self Assessment return, although the 60-day payment still runs from completion.
A Year-End Checklist for Selling Landlords
- Have you used this year's annual exempt amount, or could a sale or part of a phased sale exchange before 5 April?
- Would your income be lower next year, for example after retiring or after rents stop on properties already sold?
- Are there capital losses to claim before the four-year deadline?
- Could pension contributions or Gift Aid extend your basic-rate band this year?
- Are transfers between spouses or civil partners worth considering well before any sale?
- Are you ready for Making Tax Digital quarterly updates if your rental and trading income is over the threshold?
Cautions
Tax should not be the only factor. Waiting for a new tax year can mean another quarter of mortgage interest, compliance costs and market risk, and a buyer may not wait. Rushing an exchange before 5 April can mean accepting a weaker price or contract terms. A small saving in CGT is easily lost on price. Ask your accountant to model both dates, and use our Landlord Exit Calculator for rough figures.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
The UK tax year ends on 5 April. For landlords selling property, which side of that date contracts are exchanged decides which year's allowances and rates apply to the gain. Planning a sale around the year end can make better use of allowances, but should not drive a bad commercial decision.
For an unconditional contract, the date of exchange decides the tax year. The 60-day reporting and payment deadline runs from completion.
From 6 April 2026 for landlords and sole traders with qualifying income over £50,000, from April 2027 over £30,000, and from April 2028 over £20,000.
No. The annual exempt amount cannot be carried forward, but a sale after 5 April uses the new tax year's allowance.
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