Capital Gains Tax Calculator 2026
Calculate capital gains tax on UK property sales. Work out your CGT liability at 18% and 24% rates with allowable deductions and annual exemption.
Property Details
Solicitor, stamp duty, etc.
Agent, solicitor, etc.
Extensions, renovations (not repairs)
£3,000 for 2025/26 tax year
CGT Results
Enter Property Details
Input purchase and sale prices to calculate CGT
Understanding Capital Gains Tax on Property
CGT Rates on Property
Residential property gains are taxed at 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. These rates are higher than CGT on other assets. Use our stamp duty calculator for purchase costs. Compare total selling costs with our cost of selling calculator. Read our landlord guide for full tax implications.
- • 18% for basic rate band
- • 24% for higher/additional rate
Annual Exemption
Every individual has an annual CGT exemption. For 2025/26, this is £3,000. You only pay CGT on gains above this threshold each tax year.
- • £3,000 annual exemption 2025/26
- • Per person, not per property
Allowable Costs
You can deduct certain costs from your gain to reduce your CGT liability, including purchase costs, improvement costs, and selling costs.
- • Purchase price + costs (SDLT, legal fees)
- • Improvement costs (not repairs)
- • Selling costs (agent, legal fees)
Capital Gains Tax Examples
| Scenario | Gain | Rate | CGT Due |
|---|---|---|---|
Small gain (basic rate) £20,000 gain after costs | £20,000 | 18% | £3,060 |
Medium gain (higher rate) £50,000 gain after costs | £50,000 | 24% | £11,280 |
Large gain (higher rate) £100,000 gain after costs | £100,000 | 24% | £23,280 |
Very large gain (higher rate) £200,000 gain after costs | £200,000 | 24% | £47,280 |
* Assumes £3,000 annual exemption already deducted. Actual rate depends on your total income and tax band.
Special Considerations
Principal Private Residence Relief
Your main home is usually exempt from CGT. This is called Private Residence Relief. You must have lived in the property as your only or main residence. The final 9 months of ownership are always exempt even if you've moved out.
Letting Relief
Letting Relief has been significantly restricted. It now only applies if you let out part of your main home while living there. The relief is the lower of £40,000, the PRR amount, or the gain from letting.
Transfer Between Spouses
Transfers between married couples or civil partners are CGT-free. This allows you to use both annual exemptions and potentially benefit from lower tax rates. The recipient takes on the original acquisition cost.
Reporting Deadline (60 Days)
You must report and pay CGT on UK residential property within 60 days of completion using a CGT on UK Property Return. Late reporting can result in penalties. This is separate from your Self Assessment tax return.
Important: 60-Day Reporting Deadline
CGT on UK property must be reported and paid within 60 days of completion. This is a strict deadline and applies even if you have no tax to pay. Missing this deadline can result in automatic penalties starting at £100, increasing over time. Use HMRC's online CGT on UK Property service to report and pay.
Frequently Asked Questions
What are the capital gains tax rates on property?
Capital gains tax on residential property is charged at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. These rates apply to the gain (profit) after deducting your tax-free annual allowance, which is £3,000 for the 2025-26 tax year.
Can I deduct stamp duty from my capital gains?
Yes. The stamp duty you paid when purchasing the property is added to your acquisition cost, which reduces your taxable gain when you sell. Other allowable costs include conveyancing fees, improvement works (but not maintenance), and selling costs such as estate agent fees.
What is Private Residence Relief?
If the property has been your only or main home throughout the entire period of ownership, you are fully exempt from capital gains tax under Private Residence Relief (PRR). Partial relief applies if you lived in the property for part of the ownership period.
When must I report and pay capital gains tax?
You must report the disposal of UK residential property and pay any CGT due within 60 days of completion using HMRC's online service. This is separate from your annual Self Assessment tax return. Late reporting incurs penalties.
How is the gain calculated on a property sale?
The taxable gain is the sale price minus the purchase price, stamp duty paid on purchase, buying and selling costs (legal fees, agent fees), and the cost of any capital improvements. Maintenance, repairs, and mortgage interest cannot be deducted.
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.