Free Capital Gains Tax calculator for UK residential property. Calculate CGT on a buy-to-let, second home or investment property at current 18% / 24% HMRC rates — including Private Residence Relief, joint ownership and the £3,000 Annual Exempt Amount.
| Selling price | £0 |
| Less: Selling costs | £0 |
| Less: Purchase price | £0 |
| Less: Purchase costs | £0 |
| Less: Enhancement costs | £0 |
| Total gain | £0 |
| Your ownership share (100%) | £0 |
| Less: Private Residence Relief | £0 |
| Less: Additional reliefs / losses | £0 |
| Less: Annual Exempt Amount (£3,000) | £0 |
| Taxable gain | £0 |
| Taxed at 18% (basic rate band) | £0 |
| Taxed at 24% (higher rate band) | £0 |
| Capital Gains Tax due | £0 |
You must report and pay this by:
That's — days away. Missing it triggers an automatic £100 penalty plus daily charges after 3 months.
Get our help with this →Capital Gains Tax (CGT) is the tax you pay on the profit ("gain") when you sell or dispose of a UK residential property that isn't your main home. The tax is charged on the gain, not the total sale price — so understanding what's deductible can significantly reduce your bill.
For the 2026/27 tax year, CGT on residential property is charged at two rates: 18% if your gain falls within your remaining basic rate Income Tax band, and 24% on any portion above that band. These rates apply to second homes, buy-to-let properties, holiday homes, inherited properties, and any UK residential property that hasn't been your only or main home throughout ownership.
HMRC defines residential property as any property that's used or suitable for use as a dwelling. This includes buy-to-let properties, second homes, holiday lets, inherited properties, and the gardens or grounds of these properties up to 0.5 hectares. Commercial property and most furnished holiday lets are subject to the lower 18%/24% rates for "other assets" — though this distinction has narrowed since October 2024 when the rates were aligned.
You don't pay CGT on your main residence (Private Residence Relief), property held in an ISA, transfers to a spouse or civil partner, or property left to a UK-registered charity. If you sell your only home and meet all PRR conditions, no CGT is due.
For the 2026/27 tax year (6 April 2026 to 5 April 2027), HMRC charges Capital Gains Tax on UK residential property at two rates depending on your total taxable income.
| Scenario | 2026/27 Rate | Applies To |
|---|---|---|
| Basic rate band | 18% | Gains within remaining basic rate Income Tax band (up to £50,270 total income + gain) |
| Higher rate band | 24% | Gains above the basic rate threshold |
| Trustees | 24% | All trust gains on residential property |
| Personal representatives | 24% | Estate disposals during administration period |
| Annual Exempt Amount | £3,000 | Per individual, per tax year (£1,500 for most trusts) |
The tricky part: your CGT rate depends on your total income plus gain, not just the gain itself. The personal allowance for 2026/27 is £12,570 and the basic rate band covers the next £37,700 — meaning the higher rate kicks in at £50,270 total taxable amount.
Example: If you earn £40,000 from your job and sell a buy-to-let with a £50,000 taxable gain, only £10,270 of your gain (the remaining basic band) is taxed at 18%. The rest (£39,730) is taxed at 24%. Our calculator handles this automatically.
The headline residential property rates of 18%/24% were unchanged in the Autumn Budget 2025. However, Business Asset Disposal Relief jumped from 14% to 18% on 6 April 2026 — relevant if you're disposing of a buy-to-let business or furnished holiday let portfolio.
Real-world scenarios showing how Capital Gains Tax is calculated for different property situations in 2026/27.
| Sale price | £310,000 |
| Less: Selling costs | (£6,500) |
| Less: Purchase price | (£180,000) |
| Less: Purchase costs | (£5,000) |
| Less: Enhancement costs | (£20,000) |
| Gross gain | £98,500 |
| Less: Annual Exempt Amount | (£3,000) |
| Taxable gain | £95,500 |
| £95,500 taxed at 24% (all in higher band) | £22,920 |
| CGT due | £22,920 |
| Total gain (£320,000 − £6,000 − £220,000 − £8,000) | £86,000 |
| James's 50% share | £43,000 |
| Less: James's AEA (£3,000) | (£3,000) |
| James's taxable gain (all in basic band: £50,270 − £35,000 = £15,270 left) | £40,000 |
| £15,270 × 18% + £24,730 × 24% | £8,684 |
| Priya's 50% share | £43,000 |
| Less: Priya's AEA | (£3,000) |
| Priya's taxable gain | £40,000 |
| Priya has £25,270 basic band left (£50,270 − £25,000) | |
| £25,270 × 18% + £14,730 × 24% | £8,084 |
| Total CGT for couple | £16,768 |
By owning jointly, the couple uses two AEAs and two basic rate bands, saving roughly £4,000 vs single ownership.
| Total gain (£260,000 − £5,500 − £150,000 − £4,000) | £100,500 |
| Total ownership: 126 months | |
| PRR qualifying months: 48 (lived) + 9 (final period) = 57 | |
| PRR (£100,500 × 57/126) | £45,464 |
| Gain after PRR | £55,036 |
| Less: Annual Exempt Amount | (£3,000) |
| Taxable gain | £52,036 |
| All taxed at 24% (higher rate) | £12,489 |
| CGT due | £12,489 |
| Sale price | £315,000 |
| Less: Selling costs | (£6,000) |
| Less: Probate value (base cost) | (£280,000) |
| Gross gain | £29,000 |
| Less: Annual Exempt Amount | (£3,000) |
| Taxable gain | £26,000 |
| Basic band remaining: £50,270 − £45,000 = £5,270 | |
| £5,270 × 18% + £20,730 × 24% | £5,924 |
| CGT due | £5,924 |
No CGT on the inheritance itself — only on the gain since probate.
| Property sale calculation | |
| £270,000 − £5,000 − £290,000 − £10,000 | (£35,000) |
| Capital loss carried into year | £35,000 |
| Other gains in same year (shares) | £8,000 |
| Loss offset against gains | (£8,000) |
| Loss carried forward | £27,000 |
| CGT due (this year) | £0 |
£27,000 loss can be carried forward indefinitely against future gains. Must be reported within 4 years.
Several legitimate reliefs can reduce — or eliminate — your Capital Gains Tax bill on a UK property disposal. Most self-filers fail to claim everything they're entitled to.
The most valuable property CGT relief. PRR exempts the proportion of your gain that relates to periods when the property was your only or main home. The final 9 months of ownership always qualify, even if you weren't living there at the time, provided the property was your main home at some point.
Calculation: (months as main home + 9) ÷ total months of ownership × gain. So if you owned a property for 10 years (120 months) and lived in it for the first 4 years (48 months), PRR exempts (48 + 9) ÷ 120 = 47.5% of the gain.
Each individual gets £3,000 of tax-free gains per tax year for 2026/27. Spouses each have their own — so a married couple has £6,000 of combined annual exemption. Trusts get £1,500 (or £3,000 if the beneficiary is vulnerable).
Losses on other chargeable assets sold in the same tax year — shares, crypto, other property — can be offset against your property gain. Unused losses can be carried forward indefinitely. Losses must be claimed within 4 years of the end of the tax year in which they arose.
Since April 2020, Lettings Relief only applies if you shared occupation of the property with a tenant. Most landlords no longer qualify. Where it does apply, relief is the lower of: PRR claimed, the chargeable lettings gain, or £40,000.
Transfers between spouses or civil partners are made on a no-gain/no-loss basis. Transferring a share of a property to your spouse before sale can use both individuals' £3,000 AEAs and both basic rate bands — often saving thousands. The transfer must be a genuine legal transfer of beneficial ownership, properly documented.
Not deductible: routine repairs and maintenance, mortgage interest (already deducted from rental income), buildings insurance, council tax during void periods.
These strategies are 100% HMRC-compliant. Most require planning before the sale completes.
Use both £3,000 AEAs and both basic rate bands. Can save £3,000–£8,000+ in CGT. Must be a genuine transfer.
If you have multiple disposals, splitting them across two tax years uses two AEAs and may keep more gain in the lower band.
Dig out original SDLT, legal, survey, and improvement receipts. £20,000 of forgotten costs = £4,800 CGT saved at higher rate.
Even short periods as a main home count. The final 9 months always qualify. Get the apportionment right.
Sell loss-making investments (shares, crypto) in the same tax year as the property to offset gains.
Reducing taxable income with pension contributions can keep more of your gain in the lower 18% band.
Reinvesting the gain in qualifying EIS shares within 3 years defers CGT. Specialist advice needed.
Non-UK residents face different rules. Some qualify for the new resident regime from April 2025.
From years of filing CGT returns, these are the mistakes we see most often — and what they cost.
SDLT, legal, survey, and broker fees from years ago. Easy to forget but worth thousands. Dig out completion statements.
Automatic £100 penalty + £10/day after 3 months + 5% of tax due at 6 months. Easily £1,000+ in unnecessary penalties.
New kitchen = improvement (deductible). Replacing a broken oven = repair (not deductible). Get this wrong, lose the deduction.
Counting weeks instead of months, forgetting the final 9-month rule, or claiming PRR on rented periods. Triggers HMRC enquiries.
Selling solo when joint ownership would have used two AEAs. Often a £3,000–£8,000 mistake.
Capital losses from previous years can offset current gains. Many people forget to claim them.
Since 27 October 2021, UK residents disposing of residential property must report and pay any CGT due within 60 days of completion. This is separate from your annual Self Assessment — you can't wait until January to file.
You don't need to file if: the property was your main home (full PRR), the gain is below £3,000 (covered by AEA), or you sold at a loss.
| Lateness | Penalty |
|---|---|
| Day 1 late | Automatic £100 fixed penalty |
| 3 months late | £10/day for up to 90 days (max £900) |
| 6 months late | 5% of tax due (minimum £300) |
| 12 months late | Further 5% of tax due (minimum £300) |
| Late payment | Interest at HMRC official rate (currently 7.75%) |
A £25,000 CGT bill filed 6 months late = £100 + £900 + £1,250 = £2,250 in penalties alone, plus interest. Filing on time is always cheaper.
If you're not a UK tax resident but own UK residential property, special rules apply when you sell.
Non-residents must pay UK CGT on any gain made on UK residential property sold or disposed of after 6 April 2015. You can use the property's value at 5 April 2015 as your base cost (rebasing) — meaning only growth since 2015 is taxable. Alternatively, you can elect to use the original purchase price if it's more beneficial.
Non-residents must file a Non-Resident CGT Return within 60 days of completion, regardless of whether tax is due. This is the same 60-day window as UK residents, but applies even when no tax is owed (different from UK residents who only file when CGT is due).
Non-residents are entitled to the same Annual Exempt Amount (£3,000) as UK residents. Private Residence Relief is available, but with restrictions — the property must have been your only or main home and you must meet a "90-day rule" for any tax year you're claiming relief in.
Non-resident CGT is one of the most complex areas of UK tax. Contact us if you're a non-resident selling UK property — we handle these returns regularly.
Filing looks simple until you realise what's at stake. Here's what you get for a fixed fee.
We file through HMRC's UK Property Disposal service on your behalf. No Government Gateway stress, no missed deadlines, no penalties.
PRR, Lettings Relief, spousal transfers, allowable costs you forgot about. We check every angle HMRC allows — often saving more than our fee.
Quoted upfront before we start. Complex cases quoted on day one. No hourly billing, no hidden costs.
Real feedback from UK property sellers we've helped file.
"Sold my buy-to-let and had no idea about the 60-day rule. Fiscal Umbrella filed everything within a week, found costs I'd forgotten, and the whole thing came in under quote. Saved me a penalty and some tax."
"I'd calculated my CGT myself online and thought I knew the number. Their review spotted spousal transfer planning I hadn't considered and knocked thousands off. Quick, professional, fair fee."
"Used them for two disposals in the same tax year. Explained everything in plain English, handled HMRC correspondence, no nasty letters. Exactly what I wanted — will use again."
For the 2026/27 tax year, UK residential property gains are taxed at 18% if the gain falls within your remaining basic rate Income Tax band, and 24% if the gain falls above the basic rate threshold of £50,270. The Annual Exempt Amount of £3,000 per person applies first.
Generally no. Your main residence is exempt from CGT under Private Residence Relief, provided the property has been your only or main home throughout the period of ownership. If you let part of it, used part exclusively for business, or had long periods of absence, partial relief may apply.
UK residents must report the disposal and pay any CGT due within 60 days of the completion date using HMRC's UK Property Disposal online service. Non-UK residents must also file within 60 days, regardless of whether tax is due. Late filing triggers automatic penalties from £100 plus interest on unpaid tax.
You can deduct: estate agent fees, solicitor and conveyancing fees on sale, original Stamp Duty Land Tax paid at purchase, legal and survey fees on purchase, mortgage valuation fees, and capital improvements such as extensions, loft conversions and new kitchens. Routine repairs and maintenance are not deductible.
Each owner is taxed on their share of the gain. Each owner has their own £3,000 Annual Exempt Amount, so a married couple jointly owning a property has £6,000 of combined exemption. Each owner's share is taxed against their individual income, which can put more of the gain in the lower 18% band.
Private Residence Relief (PRR) exempts the proportion of your gain relating to periods when the property was your main home. Calculate it as: (months lived as main home + final 9 months of ownership) ÷ total months of ownership × gain. The final 9 months always qualify even if you weren't living there, provided the property was your main home at some point.
Transfers between spouses or civil partners are made on a no-gain/no-loss basis and don't trigger CGT. Transferring a share of a property to your spouse before sale can use both individuals' £3,000 Annual Exempt Amounts and both basic rate Income Tax bands, potentially saving thousands. This must be properly documented with legal title transferred.
Non-UK residents disposing of UK residential property must file a Non-Resident CGT return within 60 days of completion, regardless of whether tax is due. CGT applies to any gain from April 2015 (you can use the property's April 2015 value as the base cost). Annual Exempt Amount of £3,000 applies.
For Buy-to-Let properties never lived in by the owner, no Private Residence Relief applies. The full gain (after deducting allowable costs) is subject to CGT. Our calculator handles this by leaving the PRR option unticked and applying the full gain after the £3,000 exemption to the appropriate 18%/24% bands based on your total income.
Capital losses can be offset against capital gains in the same tax year. If losses exceed gains, the surplus loss can be carried forward indefinitely to offset future capital gains. Losses must be reported to HMRC within 4 years of the end of the tax year in which they arose.
You don't pay CGT when you inherit property — Inheritance Tax may apply to the estate instead. However, when you later sell the inherited property, CGT applies to any increase in value between the date of inheritance (the probate value) and the sale price.
Fiscal Umbrella charges a fixed fee for 60-day CGT returns, quoted upfront after a free 15-minute review. Pricing depends on the complexity of your situation — straightforward UK residential disposals are at the lower end, while non-resident or multiple-disposal cases are quoted individually. Request a free quote and you'll have a clear price within 24 hours.
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