Use our calculator above to work out how much Capital Gains Tax you could owe when selling a property that isn’t your main residence.
If you’re looking to borrow money to purchase a property, speak to our mortgage advisers to find deals that suit your situation.
How to Use the Calculator
Enter your total earnings, the sale and purchase price of the property, and any tax-deductible costs, then hit Calculate.
- Deductible costs you can include are:
- Costs of improving the property, such as an extension
- Stamp Duty Land Tax
- Estate agents’ or auctioneers’ fees
- Solicitors’ or conveyancers’ fees
- Professional valuation costs, such as a surveyor or valuer
Capital Gains Tax Calculator
Work out how much Capital Gains Tax you could owe when selling a second home or buy-to-let property.
How Is This Calculated?
Our calculator takes the figures you enter, deducts the relevant expenses, and applies the current Capital Gains Tax rates to work out what you’d owe when selling a buy-to-let or second property.
Capital Gains Tax rates, 2025/26:
| Taxable gains on property | Rate |
|---|---|
| Up to £3,000 | 0% |
| £3,001 – £50,270 | 18% |
| £50,271 and above | 24% |
Assumptions Used in This Calculator
This calculator is based on the following, for the 2025/26 tax year:
- You became the property owner after 1 April 1982, and the property is sold within the 2025/26 tax year
- You’re not claiming any CGT losses from previous tax years
- You’ve never lived in the property, and it wasn’t owned by a company
- You’re not eligible for Private Residence Relief or Letting Relief
- Your income exceeds the Personal Allowance of £12,570 a year
- The CGT annual exempt amount is £3,000
- Basic rate taxpayers pay 18%, higher rate taxpayers pay 24%
If any of this doesn’t reflect your situation, our Capital Gains Tax guide covers how to work out your figure by hand. This calculator is for property only, not general investments.
What Is Capital Gains Tax?
Capital Gains Tax (CGT) is a UK tax on the profit made from selling or disposing of certain assets, including property that isn’t your main home, shares, and valuable personal items. It only applies to the gain, not the full sale price.
Everyone gets an annual CGT allowance, letting you make a certain amount of profit each tax year before any tax is due. Above that allowance, the rate you pay depends on your Income Tax band, which is worked out using your total income plus the gain itself.
If you’re selling a property held through a limited company, you won’t pay Capital Gains Tax – you’ll pay Corporation Tax instead.
Capital Gains Tax FAQs
How Is Capital Gains Tax Calculated?
Each tax year you have an allowance you can make in gains before any tax applies. You only pay tax on the amount above that allowance, and the rate depends on what you’re selling and your income.
| Asset type | Basic rate income (under £50,270) | Higher rate income (over £50,270) |
|---|---|---|
| Property | 18% | 24% |
Example: your allowance is £3,000. You make a £15,000 gain on a property and you’re a basic rate taxpayer. You’d pay 18% on £12,000 of that gain.
Your gain is added to your income when working out your rate, which can push part or all of it into the higher band. If your gain is large enough, you may end up paying tax at both rates – some at 18%, the rest at 24%.
The allowance only applies within each tax year, so any unused allowance doesn’t carry forward.
When Do I Owe Capital Gains Tax?
You owe CGT if your total gains across the tax year exceed the allowance threshold. Anything below the threshold is tax-free.
What Are the 2025/26 Capital Gains Tax Rates?
For the tax year running 6 April 2025 to 5 April 2026, the CGT allowance for property is £3,000. Above this, basic rate taxpayers pay 18% and higher rate taxpayers pay 24%.
Do I Owe Capital Gains Tax When I Sell My Home?
No, selling your main home doesn’t trigger CGT. It only applies to a second home, holiday home, or buy-to-let property, and only on the profit above your allowance.
When Do I Report and Pay Capital Gains Tax?
You can declare and pay CGT to HMRC online. For example, if you sell a property in December 2025 with a £100,000 profit, that falls in the 2025/26 tax year. Since completion is after 27 October 2021, you have 60 days from the sale to report and pay. You’ll need a Capital Gains Tax on UK property account with HMRC to do this, and you’ll pay tax on your profit minus any allowable deductions.
What Counts as a Capital Gains Tax Exemption?
You’re exempt from CGT, in full or in part, in situations including:
- Your main residence, where you live – known as Private Residence Relief
- A second property that was previously your main residence – you’ll still pay CGT overall, but you’re exempt for the time you lived there plus the final 9 months of ownership, under partial Private Residence Relief
- Your main residence if you’re sharing occupancy with a tenant at the time of sale and already qualify for Private Residence Relief – known as Letting Relief
- Private motor vehicles
- Government stocks
- Lottery wins, bets, sweepstakes, or prize bonds
Certain costs can also be deducted from your profit, including solicitor and estate agent fees and Stamp Duty – all factored into the calculator above.
Do I Have to Pay Capital Gains Tax If I’m Retired?
Yes, there’s no age-based exemption from CGT in the UK. Retirees pay the same allowance and rates as anyone else, unless a specific relief applies. For example, at 55 or older you may qualify for a separate exemption when selling a business or farm under certain conditions.
Do I Have to Pay CGT on a Second Property?
Yes, selling a second property means CGT applies on the profit above your allowance. If the property is jointly owned, the allowance applies per person, so a jointly owned second home gets a combined £6,000 tax-free allowance.
You’re only taxed on the profit, not the full sale price. For example, buying for £100,000 and selling five years later for £200,000 gives a £100,000 profit, minus any deductible costs or allowances.
Deductions or reliefs that might apply include:
- Estate agent fees, solicitor fees, and Stamp Duty costs
- Private Residence Relief, if the property was your main residence at some point
- Letting Relief, if you share occupancy with a tenant at the time of sale and already qualify for Private Residence Relief
If you gift or transfer a second home to someone else, CGT still applies, generally based on the property’s market value rather than any sale price.