Use our free Capital Gains Tax Calculator to estimate your CGT bill on any property sale.
Capital gains tax on residential property uses different rates to other assets. For 2026/27:
| Taxpayer | Rate on residential property |
|---|---|
| Basic rate (income up to £50,270) | 18% |
| Higher rate (income over £50,270) | 24% |
| Additional rate (income over £125,140) | 24% |
Every individual has an Annual Exempt Amount (AEA) of £3,000 in 2026/27. You only pay CGT on gains above this threshold. If you make a gain of £50,000 on a property sale, you pay CGT on £47,000 (after the £3,000 exemption).
If you sell your main home, you generally pay no CGT at all under Private Residence Relief (PRR). This applies if:
If you sell a buy-to-let or second home, PRR does not apply and CGT is due on the gain. The gain is calculated as: sale price − purchase price − allowable costs.
Allowable costs include:
You must report and pay CGT within 60 days of completion on UK residential property sales.
You buy a buy-to-let flat for £200,000 in 2018 and sell it for £280,000 in 2026.
Purchase costs (stamp duty + solicitor): £7,500
Sale costs (estate agent + solicitor): £4,500
Total gain: £68,000 (£80,000 − £12,000 costs)
Less annual exempt amount: −£3,000
Taxable gain: £65,000
If you are a higher rate taxpayer: CGT = £65,000 × 24% = £15,600
18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on residential property.
No — your main residence is exempt under Private Residence Relief. CGT only applies to second homes, buy-to-let, and properties that have not always been your main home.
£3,000 in 2026/27. You only pay CGT on gains above this threshold each tax year.
You must report and pay CGT within 60 days of completion on UK residential property sales. Use HMRC's online Capital Gains Tax service.