Capital Gains Tax on Property Calculator

Capital Gains Tax on residential property is charged at higher rates than other assets. For 2026/27, basic-rate taxpayers pay 18% on residential property gains, while higher and additional-rate taxpayers pay 24%. The annual exempt amount of £3,000 applies before these rates are calculated.

Your main home is usually exempt from CGT under Private Residence Relief (PRR). If you lived in the property for part of the ownership period, partial relief is available. Letting Relief provides up to £40,000 of additional exemption if the property was once your main home and was subsequently let to tenants.

CGT on UK residential property must be reported and paid within 60 days of completion via the Capital Gains Tax on UK property service. This is earlier than the normal Self Assessment deadline. This calculator factors in PRR, letting relief and the £3,000 annual exemption to show your net liability.

When does CGT apply to property? Main home: usually exempt under Private Residence Relief (PRR). Second homes, buy-to-let, inherited property after probate, gifts to non-spouse: all subject to CGT. Selling for less than market value to family: HMRC may calculate CGT on actual market value (deemed disposal). Gifts to spouses are CGT-free.

How property CGT is calculated. Gain = sale price - purchase price - allowable costs (legal fees, stamp duty paid, agent fees, capital improvements like extensions, kitchens, new boilers). Deduct the £3,000 Annual Exempt Amount. CGT rate: 18% (basic-rate taxpayer) or 24% (higher-rate) since October 2024 unified rates. Two-step: add your gain to other income; the slice within basic rate band taxed at 18%, slice above at 24%.

60-day reporting and payment. Since April 2020, UK residential property disposals must be reported within 60 days of completion via gov.uk Capital Gains Tax on UK Property service. Pay any CGT due within the same 60 days — much faster than annual Self Assessment. Late filing penalty: £100 immediate, £10/day from 3 months, plus interest. Non-residents disposing of UK property: same 60-day rule applies, plus tax on actual gain (not just rebased value since 2015).

Private Residence Relief and Letting Relief. PRR exempts your main home from CGT IF lived in throughout ownership. Partial PRR if you moved out — exempts last 9 months automatically. If you let part of your home (sharing with tenants), Letting Relief reduces CGT by up to £40,000. If you rented out the entire property after moving out, Letting Relief is restricted since April 2020 (now only applies if you lived there at the SAME time as the tenants).