Free Calculator
Capital Gains Tax Calculator
Calculate your CGT liability when selling a UK property. Covers residential property rates (18%/24%), annual exempt amount, and allowable deductions.
Purchase
Sale
Your Tax Position
Capital Gains Tax
£15,464
Total Gain
£70,000
Taxable Gain
£67,000
Effective Rate
22.1%
Net Profit After Tax
£54,536
Calculation Breakdown
Frequently Asked Questions
When do I pay Capital Gains Tax on property?
You pay CGT when you sell a property that is not your main home (principal private residence). This includes buy-to-let properties, second homes, inherited properties you don't live in, and commercial property. You must report and pay within 60 days of completion.
What are the CGT rates on residential property?
From 30 October 2024, residential property CGT rates are 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. The rate depends on your total taxable income plus the gain — if the gain pushes you into the higher rate band, part may be taxed at 18% and part at 24%.
What is the CGT annual exempt amount?
The annual exempt amount for 2024-25 and 2025-26 is £3,000. This was reduced from £6,000 in 2023-24 and £12,300 in 2022-23. Each individual gets their own allowance.
What costs can I deduct from a capital gain?
You can deduct: the original purchase price, stamp duty paid on purchase, solicitor fees (buying and selling), estate agent fees on sale, cost of significant improvements (not maintenance), and surveyor fees. You cannot deduct mortgage interest or routine maintenance.
How do I report and pay CGT on property?
You must report the disposal and pay the CGT within 60 days of completion using HMRC's real-time Capital Gains Tax on UK property service. You'll also need to include it on your Self Assessment tax return for the relevant tax year.
Disclaimer: This content is for educational purposes only and does not constitute tax advice. Tax rules are complex, change frequently, and depend on individual circumstances. Always consult a qualified accountant or tax advisor (ACCA, ICAEW, or CIOT qualified) before making tax-related decisions.
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Capital Gains Tax on UK Property — What You Need to Know
Capital Gains Tax (CGT) is charged on the profit when you sell a property that is not your main home. Since October 2024, the CGT rates on residential property are 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. The Annual Exempt Amount (AEA) is currently £3,000 per person per tax year — anything above this is taxable.
You must report and pay CGT within 60 days of completion on the property sale — not by the following 31 January. Missing this deadline incurs an automatic penalty and interest charges from HMRC.
What Can You Deduct to Reduce CGT?
Your CGT liability is based on your net gain after deducting: the original purchase price, stamp duty paid on purchase, legal and survey fees on purchase, capital improvement costs (not maintenance or repairs), estate agent fees on sale, and legal fees on sale. Keep receipts for all capital improvements — HMRC may request evidence of these deductions.
Private Residence Relief (PRR)
If you've lived in the property as your main home at any point, you may qualify for Private Residence Relief, which can reduce or eliminate CGT entirely. PRR covers the period you lived there plus the final 9 months of ownership regardless of whether you were living there. This is particularly relevant for accidental landlords who moved out and then let the property.
Halve Your CGT with a Spouse or Civil Partner
If you own property jointly with a spouse or civil partner, each person uses their own £3,000 AEA and pays CGT at their own marginal rate. Transfers between spouses occur at no-gain/no-loss for CGT — so transferring a share of a property to a lower-earning spouse before selling is a legitimate tax planning strategy worth exploring with an accountant.