About this tool
What Capital Gains Tax on property is
When you sell a property that is not your main home for more than you paid for it, the profit is a capital gain and may be taxed. It typically applies to a second home, a buy-to-let, an inherited property you didn't live in, or land. This is the sale-side counterpart to the purchase taxes — Stamp Duty (SDLT) in England and Northern Ireland, LBTT in Scotland, LTT in Wales.
How the 18% and 24% rates work
First you work out the gross gain: sale price minus purchase price minus deductible costs. From that you take off the Annual Exempt Amount of £3,000 (per person, unchanged since April 2024, down from £12,300 two years earlier). What's left is the taxable gain. It is then stacked on top of your income for the year: the slice that still fits within your basic-rate band is taxed at 18%, and everything above the basic-rate band is taxed at 24%. Since 30 October 2024 these are the same rates for residential property and for other assets like shares — before that date residential property had its own higher 18%/28% pair.
Scotland: the same CGT, despite different income tax
This is the single most common mistake on the subject. Scotland sets its own income-tax bands — six of them, with the higher rate starting at £43,662 rather than £50,270. Capital Gains Tax ignores those bands entirely. CGT is reserved to the UK government, not devolved, so the 18%/24% split is always made against the UK-wide higher-rate threshold of £50,270 (personal allowance £12,570 plus the £37,700 basic-rate band), wherever you live. A Scottish taxpayer earning £46,000 pays Scottish income tax at 42% on part of that salary, but still pays CGT at 18% on the first slice of their gain — because the £4,270 of "room" left below £50,270 is calculated the UK way. Wales and Northern Ireland use the UK income-tax bands anyway, so the question only ever arises for Scotland.
Your main home is exempt
Private Residence Relief means there is normally no CGT at all when you sell the home you have lived in throughout your ownership. The relief also covers the final 9 months of ownership even if you had already moved out and the property was empty or let during that time (36 months if you are disabled or move into care). It can be restricted if you let the property out, used part of it exclusively for business, or the grounds exceed half a hectare. This calculator treats the main-residence case as fully exempt — tick the box and it returns £0.
What counts as a deductible cost
You can deduct the costs of buying and selling — estate agent and solicitor fees, survey fees, and the Stamp Duty (SDLT/LBTT/LTT) you paid when you bought — and the cost of improvement works that added value, such as an extension or a new kitchen where there wasn't one. You cannot deduct normal maintenance and repairs, mortgage interest, or your own time. Keep the paperwork: HMRC can ask for evidence of every figure.
Reporting and paying
A gain on a UK residential property must be reported and paid through HMRC's "Report and pay Capital Gains Tax on UK property" service within 60 days of completion — separate from, and usually earlier than, the annual Self Assessment return. Missing the 60-day deadline triggers automatic penalties.
What this calculator doesn't cover
It is a light, indicative tool. It does not model joint ownership (each owner has their own £3,000 allowance and is taxed on their share at their own income level — run the calculator once per owner), Business Asset Disposal Relief (for business assets, not homes — the rate rose to 18% on 6 April 2026), non-resident Capital Gains Tax (a different gain basis for people not UK-resident for tax), lettings relief, gains on assets other than property, or any interaction with losses carried forward from earlier years.
Disclaimer
Indicative estimate only, 2026/27 tax year, residential property, UK-wide. Not tax advice — confirm your exact liability with gov.uk or an accountant before filing.