Pro Tool

Property Gains Tax

Calculate Capital Gains Tax on UK property sales. Annual allowance, tax rates, reliefs, and reporting deadlines. Residential and BTL. Instant, accurate results.

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Frequently Asked Questions

How much is Capital Gains Tax on property in the UK?

UK residential property CGT rates for 2025/26 are 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers. These are higher than the rates for other assets (10%/20%). The annual exempt amount is £3,000. Our calculator applies the correct rate based on your total taxable income.

Do I pay CGT on my main home?

Usually no — your main residence is exempt from CGT under Private Residence Relief (PRR). However, if you've let part of it, used it for business, or been absent for extended periods, a portion of the gain may be taxable. The final 9 months of ownership are always exempt.

What costs can I deduct from a property capital gain?

Allowable deductions include: SDLT paid on purchase, solicitor fees (buying and selling), estate agent fees, capital improvements (extensions, new kitchen — but not repairs or maintenance), and the cost of any professional valuations. These are deducted from the sale price to reduce your taxable gain.

Do I have to report a property sale to HMRC within 60 days?

Yes — since April 2020, UK residential property sales that result in a CGT liability must be reported to HMRC within 60 days of completion, and a payment on account made. Late reporting incurs penalties starting at £100. Our tool flags the deadline based on your completion date.

How can I reduce my Capital Gains Tax on property?

Strategies include: claiming all allowable costs and improvements, using your annual exempt amount (£3,000), transferring property to a spouse before sale to use two allowances, timing the sale across tax years, and ensuring Private Residence Relief is maximised. Our tool models these scenarios.