Capital Gains Tax Calculator: UK Property
Selling a second home, buy-to-let or inherited property? Enter the sale figures and your income to see the taxable gain, the 18% and 24% split, the CGT due within 60 days — and what you keep.
Last updated 2 July 2026 · Written and reviewed by Mustafa Bilgic
Property CGT calculator
Residential property rates, 2026/27.
Estimate only — figures use the latest published UK rates. Always confirm on GOV.UK.
When Capital Gains Tax applies to property
You pay Capital Gains Tax when you sell a UK residential property that is not your main home at a profit — typically a second home, a buy-to-let, or an inherited property you later sell. Your own home is normally covered by private residence relief, which exempts the gain for the time you lived in it as your only or main residence. The tax is charged on the gain, not the sale price: what you sold for, minus what you paid, minus your buying, selling and improvement costs. The rules are set out on GOV.UK.
Sell a buy-to-let for £320,000 that you bought for £220,000, with £8,000 of buying and selling costs and £12,000 of improvements: your gain is £80,000. After the £3,000 exempt amount, £77,000 is taxable. With income of £35,000, the first £15,270 is taxed at 18% (£2,748.60) and £61,730 at 24% (£14,815.20) — CGT of £17,563.80, due within 60 days of completion.
How the tax is worked out
First deduct the annual exempt amount of £3,000 (£1,500 for trusts) from your gain — both frozen for 2026/27. The rest is taxed in two slices. Whatever fits inside your unused basic-rate band is taxed at 18%; anything above is taxed at 24%. Your unused band is £37,700 minus your taxable income over the £12,570 personal allowance — so on a £35,000 salary, £15,270 of the band is left. Higher earners with income above £50,270 have no band left, and pay a flat 24% on the whole taxable gain. Your salary figure comes straight from your payslip; our take-home pay calculator shows where you sit against the £50,270 line.
Worked example
| Step | Amount |
|---|---|
| Sale price | £320,000 |
| Purchase price | −£220,000 |
| Buying & selling costs | −£8,000 |
| Improvements | −£12,000 |
| Total gain | £80,000 |
| Annual exempt amount | −£3,000 |
| Taxable gain | £77,000 |
| £15,270 at 18% | £2,748.60 |
| £61,730 at 24% | £14,815.20 |
| CGT due | £17,563.80 |
The 60-day reporting rule
CGT on a UK residential property sale must be reported and paid within 60 days of completion, using HMRC's online report and pay service — a far tighter deadline than the ordinary Self Assessment timetable. Solicitors do not do this for you automatically, and missing the window can mean penalties and interest, so it pays to have the figures ready before you complete.
Costs you can and cannot deduct
Deductible: legal and conveyancing fees on both purchase and sale, estate agent fees, survey fees, the stamp duty you paid when buying, and capital improvements such as an extension or loft conversion. Not deductible: routine maintenance, redecorating and mortgage interest. If the property was rented out, remember CGT is separate from the income tax on rent — our rental income tax calculator covers that side. And if you inherited the property, your starting point is its market value at the date of death, which is also the figure used for inheritance tax.
Frequently asked questions
Do I pay Capital Gains Tax when I sell my main home?
Usually not. Private residence relief exempts your only or main home for the time you lived in it. CGT on residential property normally applies to second homes, buy-to-lets, and inherited or gifted property that was never your main residence.
What are the CGT rates on property for 2026/27?
Residential property gains are taxed at 18% where they fall within your unused basic-rate band and 24% above it, after deducting the £3,000 annual exempt amount (£1,500 for trusts). Both the rates and the allowance are frozen for 2026/27.
When do I have to report and pay CGT on a property sale?
Within 60 days of completion. You report the gain and pay the tax through HMRC's online property reporting service — much sooner than the normal Self Assessment timetable, and missing the window can mean penalties and interest.
What costs can I deduct from the gain?
You can deduct the costs of buying and selling — legal fees, estate agent fees, survey fees and the stamp duty you paid when you bought — plus capital improvements such as an extension or loft conversion. Day-to-day maintenance, redecorating and mortgage interest are not deductible.
How does CGT work on inherited property?
You do not pay CGT at the moment you inherit. If you later sell, your gain is measured from the property's market value at the date of death, not the price the deceased originally paid — so only the growth in value since you inherited is taxed.