Property hub / Capital Gains Tax on a sale
Capital Gains Tax on selling a property
The gain, the tax for each owner and the 60-day deadline, for buy-to-lets, former homes, joint owners, trusts, companies and non-UK sellers.
Checked against legislation and HMRC guidance2026/27 ratesUpdated 3 October 2026
Income: salary, pension, rent and dividends, before allowances.
The sale
The purchase
0 if you lived there until the sale.
How it is worked out
How Capital Gains Tax on property works
The gain is the sale price less selling costs, the price you paid, your buying costs and any improvements still reflected in the property. Each owner deducts the £3,000 annual exempt amount and pays 18% on the part that fits in their unused basic rate band and 24% above it.1
Reporting within 60 days
UK residents selling residential property must report and pay any Capital Gains Tax within 60 days of completion, using HMRC's online property service. Each owner reports separately. Non-UK residents must report every disposal of UK land and property within 60 days, even if there is no gain or a loss.2
If you once lived in it
Private residence relief exempts the part of the gain for the time it was your only or main home, plus the final nine months (36 months where you or your spouse are disabled or in long-term residential care and neither of you has another home that qualifies). Lettings relief now applies only where you lived in the property while letting part of it, and is capped at the lower of the main home relief and £40,000.3
Non-UK residents
For residential property held on 5 April 2015, non-residents can use the value on that date, apportion the gain by time, or use the whole gain. For commercial property the rebasing date is 5 April 2019 and time apportionment is not available. The time and whole-period methods need an election in the return.4
Not covered by the calculator
Periods of absence that count as living there, relief for trustees, mixed-use property sold by a non-resident, gains of non-UK companies, and indexation allowance for UK companies on property bought before 2018 (frozen at December 2017), which would reduce a company's gain. Each can change the figure; ask us if one applies.
Companies and trusts
Companies pay corporation tax on the gain with the rest of the year's profits. Trustees pay 24% after an annual exempt amount of £1,500.5
Common questions
What can I deduct from the gain?
The price you paid, stamp duty, legal and survey fees on the purchase, the cost of improvements such as an extension or loft conversion, and estate agent and legal fees on the sale. Repairs, redecoration and mortgage costs cannot be deducted.
Can I give half the property to my spouse before selling?
Transfers between spouses and civil partners who live together are treated as no gain and no loss, so both can use their exempt amount and basic rate band. The transfer must be a genuine gift of the beneficial interest.
Do I pay CGT if I sell at a loss?
No. A loss can be set against other gains in the same year or carried forward, as long as you claim it within four years of the end of the tax year.
Sources (5)
- Taxation of Chargeable Gains Act 1992, ss 1H, 1J and 38; HMRC, 'Capital Gains Tax rates and annual tax-free allowances' (GOV.UK, updated 13 April 2026).
- HMRC, 'Report and pay Capital Gains Tax on UK property' (GOV.UK); 'Capital Gains Tax for non-residents: UK residential property' (GOV.UK); Finance Act 2019, s 14 and Sch 2.
- TCGA 1992, ss 222, 223, 223B and 225E; HMRC, Capital Gains Manual, CG64710.
- TCGA 1992, Sch 4AA.
- Corporation Tax Act 2009, s 2; TCGA 1992, s 53(1B) (indexation for companies); HMRC, 'Capital Gains Tax rates and annual tax-free allowances' (GOV.UK).
Selling soon?
The 60-day clock starts at completion. We can work out the tax, check every cost you can deduct and file the return for you.