Capital Gains Tax Calculator 2026/27
Calculate CGT on UK residential property sales. Includes Private Residence Relief, Letting Relief, the annual exempt amount, and correct 18%/24% CGT rates.
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CGT Rates on Property for 2026/27
| Tax Band | Income Range | CGT Rate (Property) |
|---|---|---|
| Basic Rate | Up to £37,700 taxable | 18% |
| Higher Rate | £37,701 – £125,140 | 24% |
| Additional Rate | Over £125,140 | 24% |
Annual Exempt Amount (AEA): Everyone gets £3,000 of tax-free gains per year (2026/27). If you don't use it, you lose it — it can't be carried forward.
Reporting deadline: You must report UK residential property sales and pay any CGT within 60 days of completion through HMRC's Real Time Capital Gains Tax Service.
Private Residence Relief (PRR) Explained
PRR exempts the gain on your main home from CGT. You get full relief for:
- All periods you actually lived in the property as your main residence
- The final 9 months of ownership (always tax-free, even if you weren't living there)
- Up to 3 years of absence for any reason (if you lived there before and after)
- Periods working abroad (unlimited if you lived there before and after)
- Up to 4 years working elsewhere in the UK (if lived there before and after)
PRR is calculated as: (qualifying months + 9) / total ownership months × total gain
Letting Relief
Letting Relief was heavily restricted from April 2020. It now only applies if:
- You shared occupancy with your tenant (lodger situation)
- You were in the same property at the same time
For most landlords who let out their former home while living elsewhere, Letting Relief no longer applies. Only Private Residence Relief and the Annual Exempt Amount reduce the taxable gain.
Frequently Asked Questions
Do I pay CGT on my main home?
No — if the property has been your only or main residence throughout ownership, full Private Residence Relief applies and no CGT is due. You only pay CGT if part of the gain is not covered by PRR (e.g., you let it out, used it as a second home, or it's a buy-to-let).
How do I avoid CGT on a second property?
You can't completely avoid it, but you can reduce it: use your £3,000 Annual Exempt Amount, transfer the property to your spouse (no CGT on transfers between spouses), time the sale across tax years to use two years' allowances, offset capital losses from other assets, and deduct all allowable costs (purchase costs, improvements, selling costs).
What costs can I deduct from my property gain?
Allowable: Estate agent fees, solicitor fees, stamp duty on purchase, survey costs, and capital improvements (extensions, new kitchens, bathrooms). Not allowable: Mortgage interest, maintenance/repairs, insurance, council tax, or decorating costs.