When an investment property is sold for more than its purchase price, the profit is usually subject to Capital Gains Tax (CGT). In the UK, gains on residential property are taxed at 18% (basic rate taxpayers) or 24% (higher rate taxpayers) as of 2024. In Australia, individuals who hold a property for more than 12 months receive a 50% CGT discount on the gain. In the US, long-term capital gains rates range from 0% to 20% depending on income. Strategies such as principal place of residence exemptions or, in the US, a 1031 exchange may help reduce or defer CGT — always confirm options with a tax professional.