Capital Gains Tax on Property Calculator
Selling a second home, buy-to-let property, or inherited house in the UK triggers Capital Gains Tax on any profit you make. Investment and additional properties are fully taxable.
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Many property owners underestimate their CGT bill by forgetting that the annual exemption is now just £3,000 per person. Others miss valuable reliefs they could claim – Private Residence Relief for periods you lived in the property, or Letting Relief if you once lived there and later rented it out.
Understanding your potential CGT liability before selling helps you plan the sale timing and explore legitimate tax-reduction strategies. Enter your property details below to see an estimate of the capital gains tax you would owe.
Property Details
If this property was ever your main home, enter the total time you lived there
Extensions, renovations (not repairs)
Estate agent fees, legal costs
CGT Calculation
When You Pay CGT on Property
CGT Usually NOT Due
- Selling your main residence (Private Residence Relief applies)
- Transferring property to your spouse or civil partner
- Giving property to charity
- Gains within your annual tax-free allowance
- Property held in an ISA or pension
CGT Usually IS Due
- Selling a second home or holiday home
- Selling a buy-to-let investment property
- Selling inherited property (that wasn't your home)
- Selling property used partly for business
- Your main home if you let part of it
Private Residence Relief Explained
Private Residence Relief (PRR) is the main tax relief that protects gains on your home from CGT. Understanding how it works is crucial if you've ever lived in a property you're now selling.
Full Relief
Partial Relief
Letting Relief
How PRR is Calculated
The relief is calculated as a proportion of your total gain:
CGT Rates for Property
| Tax Year | Basic Rate Taxpayers | Higher/Additional Rate | Annual Allowance |
|---|---|---|---|
| 2024/25 to 2026/27 | 18% | 24% | £3,000 |
| 2023/24 | 18% | 28% | £6,000 |
| 2022/23 | 18% | 28% | £12,300 |
Note: The higher rate for residential property reduced from 28% to 24% from 6 April 2024. The annual CGT allowance has also been significantly reduced in recent years.
Worked Example: Selling a Buy-to-Let
Scenario
Sarah is a higher rate taxpayer selling a buy-to-let flat in 2026/27. She bought it for £180,000 in 2015 and is selling for £280,000. She spent £15,000 on a new kitchen and bathroom, and selling costs are £4,000.
Step 1: Calculate the Gain
Step 2: Calculate CGT
Sarah must report and pay this within 60 days of completion using HMRC's online service.
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