What is a phased sale?
A phased sale spreads the sale of a portfolio over more than one tax year. It can make use of more than one annual exempt amount and basic-rate band, but means keeping the remaining properties, mortgages and tenants for longer.
Read more in our guide: Landlord Exit Calculator
Key facts at a glance
| Item | Detail |
|---|---|
| What it is | Selling a portfolio in two or more stages, often across tax years |
| Main tax benefit | A fresh annual exempt amount and basic-rate band each tax year |
| Key date | 5 April; for CGT, the date of exchange decides the tax year |
| Common structures | Separate sales, or one contract with staged completions |
| Main risks | Market changes, buyer not completing later stages, continued landlord costs and duties |
| Lender issue | Portfolio loans may need consent to release individual properties |
How a Phased Sale Works
Instead of selling everything at once, the landlord sells some properties in one tax year and the rest in the next, or over several years. The aim is usually to use more than one year's annual exempt amount and basic-rate band, but some landlords phase a sale for practical reasons, such as waiting for a fixed-rate mortgage to end or keeping some rental income.
A phased sale can be to several buyers, or to one buyer under a single contract with staged completions. Remember that for CGT the disposal date is normally exchange, so a single exchange with completions spread over two tax years may put all the gains in the first year.
A Worked Example: How Much Does It Save?
A landlord with £30,000 of other income sells four houses with total gains of £200,000.
| All in one tax year | Two tax years, £100,000 each | |
|---|---|---|
| Taxable gain per year | £197,000 | £97,000 |
| Taxed at 18% each year | £20,270 | £20,270 |
| Taxed at 24% each year | £176,730 | £76,730 |
| Total CGT | £46,064 | £44,128 |
The saving here is about £1,900. It would be larger if the landlord's income fell in the second year, for example because the rents from the properties already sold had stopped, or if there were joint owners each with their own allowances. It can be smaller than the extra mortgage interest, compliance costs and risk of waiting. Run your own figures in the Landlord Exit Calculator and check with your accountant.
Risks and Practical Points
- Market risk. Prices, interest rates or buyer demand may change before the later stages.
- Buyer risk. If later stages are not contractually binding, the buyer may walk away. Deposits and clear contract terms reduce the risk.
- Ongoing duties. You remain the landlord for the unsold properties, with all the obligations under the Renters' Rights Act, including the landlord database.
- Mortgages. Portfolio and cross-collateralised loans may not allow individual properties to be released without consent or repayment of a larger amount.
- Weaker properties left behind. If the best properties sell first, the rest can be harder to sell later.
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
A phased sale spreads the sale of a portfolio over more than one tax year. It can make use of more than one annual exempt amount and basic-rate band, but means keeping the remaining properties, mortgages and tenants for longer.
It can, because each tax year has its own annual exempt amount and basic-rate band. The saving is often modest unless your income falls or there are several owners, so compare it with the costs of waiting.
Yes. A buyer can agree to buy in tranches, either under separate contracts or one contract with staged completions. The structure affects which tax year each gain falls in.
For an unconditional contract, the date of exchange decides the tax year for Capital Gains Tax, not completion.
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