Capital Gains Tax on Property Calculator
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Try free →The current rates on residential property
Capital Gains Tax on a residential property that isn’t your main home — a buy-to-let, second home, or inherited property — is charged at 18% on gains that fall within your basic rate Income Tax band, and 24% on any gain above that. Which rate applies depends on your total taxable income for the year, not just the size of the gain itself, so a large gain can straddle both rates in the same tax return.
What reduces the taxable gain
- Every individual has an annual exempt amount — £3,000 for 2026/27 — that’s deducted from your total gains before tax is calculated
- You can deduct the original purchase costs (including SDLT and legal fees), the costs of sale (estate agent and legal fees), and genuine capital improvements — an extension or loft conversion, for example — though not routine maintenance or repairs
- Private Residence Relief can reduce or eliminate CGT if the property was your main home for some of the time you owned it, calculated proportionally against your total ownership period
- Gains must be reported and paid within 60 days of completion on UK residential property, separately from your annual Self Assessment return — missing this window triggers its own penalties
The 60-day reporting rule catches people out
Unlike most other tax obligations that wait until the end of the tax year, CGT on residential property must be reported and paid within 60 days of the sale completing — a much tighter window than people expect, and one that’s easy to miss if you’re relying on your usual annual Self Assessment cycle.