Capital Gains Tax Calculator 2026

How capital gains tax works on UK property

Capital gains tax is charged on the profit you make when you sell an asset that has increased in value. For UK residential property, CGT applies when you sell a property that is not — or has not always been — your main home. This includes buy-to-let properties, second homes, and inherited properties that are not your primary residence.

The gain is calculated as the difference between the sale price and the purchase price, less allowable costs such as solicitor fees, stamp duty paid on purchase, estate agent fees on sale, and the cost of capital improvements. The annual CGT exempt amount (£3,000 for 2024/25 onwards) is then deducted to give the taxable gain.

CGT rates on residential property (from October 2024)

Note: rates increased from 18%/28% to 18%/24% in the October 2024 Autumn Budget. The rate depends on your total taxable income including the gain in the year of sale.

Frequently asked questions

How much CGT do I pay on a property sale?

Capital gains tax on UK residential property is charged at 18% for basic rate taxpayers or 24% for higher and additional rate taxpayers (rates as updated in October 2024). The rate depends on your total taxable income in the year of the sale, including the gain itself. You pay CGT only on the gain — the difference between the sale price and the purchase price, less allowable costs and reliefs. The annual CGT exempt amount for individuals is £3,000 for 2024/25 onwards.

Do I pay CGT on the sale of my main home?

In most cases, no. Full Private Residence Relief (PRR) exempts the entire gain on the sale of a property that has been your only or main residence throughout your ownership. If the property has not always been your main residence — for example, you rented it out for a period or lived elsewhere — you may only be entitled to partial PRR, and some of the gain could be taxable. The final 9 months of ownership always qualify for PRR, even if you were not living there at the time.

What is the 60-day CGT reporting rule?

Since April 2020, UK residents who dispose of UK residential property on which CGT is due must report the gain and pay the estimated tax within 60 days of the completion date. This is done via the HMRC 'Report and pay CGT on UK property' online service. Failure to report within 60 days may result in penalties and interest. Note that this is separate from your annual Self Assessment tax return, which you may still need to complete.

What is the annual CGT exempt amount?

The annual CGT exempt amount (sometimes called the annual exempt amount or AEA) is the amount of capital gains each individual can make each tax year before CGT becomes payable. For 2024/25 onwards, this is £3,000 — significantly reduced from £12,300 in 2022/23. The allowance cannot be carried forward to future years. If your total gains in a tax year are below £3,000, no CGT is due.

Can I reduce CGT on a rental property sale?

Yes — there are several ways to reduce a CGT liability. You can deduct the costs of buying and selling the property (solicitor fees, estate agent fees, stamp duty paid on purchase) as well as the cost of capital improvements made during ownership. Using your annual CGT exempt amount (£3,000) will reduce the taxable gain. If the property was at some point your main residence, partial Private Residence Relief and letting relief may apply. You can also time the sale to use your annual exempt amount in the most tax-efficient year, or transfer assets between spouses to use both allowances.

Related tools

• Rental income tax calculator — Calculate tax on rental income under Section 24 rules
• Stamp duty calculator — Calculate SDLT on your next property purchase
• Stamp duty refund calculator — Find out if you can claim back the additional dwelling surcharge
• Sold house prices — Search HM Land Registry price paid data