Capital Gains Tax Calculator UK

How much is Capital Gains Tax? For this tax year, which runs from 6 April 2025 – 5 April 2026, your Capital Gains Tax allowance for property is £3,000. This means you’ll pay tax on any profit you make over this amount.

For property, you’ll pay 18% if you’re on a basic rate income and 24% if you’re on a higher rate income.

If you sell your main home, you won’t owe any Capital Gains Tax. You will only pay tax if you sell a second home, such as a holiday home, or buy-to-let property. If you rent out a property that you don’t live in, you will only pay Capital Gains Tax on the profit you make over the CGT allowance.

For gains you make on selling residential property, you can declare and pay any Capital Gains Tax to HMRC online.

• If you sell your property in December 2025, and make a profit of £100,000, the gain made will come under the 2025 – 2026 tax year
• As the completion date is after 27th October 2021, you will have 60 days from selling the property to report and pay the Capital Gains Tax
• You will need to make a Capital Gains Tax on UK property account to report and pay any tax due on UK property
• You will then need to pay Capital Gains Tax on your £100,000 profit, minus any allowable cost deductions

You’re exempt from paying Capital Gains Tax on gains (or some of the gains) made from certain assets or under certain conditions, including:

• Your main residential property where you live – this is called Private Residence Relief
• Your second property if it was your main residence for a certain period – you still pay CGT when you sell a second property, but you’re exempt for the period in which you lived in the property and the last 9 months due to partial Private Residence Relief
• Your main residence where you live in the property and share occupancy with a tenant at the time of sale, and already qualify for Private Residence Relief – this is called Letting Relief
• Private motor vehicles
• Government stocks
• Lottery wins, bets, sweepstakes or prize bonds

You may also be able to deduct certain costs from your profit. For example, solicitor and estate agent fees and Stamp Duty can be deducted from the profits of a property sale – you can factor these into the Capital Gains Tax UK Calculator.

In the UK, there is currently no age restriction or automatic retirement exemption on Capital Gains Tax. For senior citizens and retirees, the usual Capital Gains Tax allowance applies unless you qualify for other exemptions or tax relief. For example, if you’re 55 or older, you may be able to qualify for an exemption on Capital Gains Tax for selling a business or farm under certain conditions. 

If you sell a second property, you’ll be liable to pay Capital Gains Tax on the profit you make above your allowance. If you jointly own the property, the tax-free allowance is calculated per person, so a tax-free allowance of £6,000 applies to the sale of a jointly owned second home.

The Capital Gains tax rate is set at 18% for basic rate taxpayers and 24% for higher rate taxpayers. 

Remember, you’ll only be taxed on the profit, not the full amount of the sale. So, for example, if you bought the property for £100,000 and sold it 5 years later for £200,000, the profit would be £100,000, minus any deductible costs or tax allowances. 

Some tax allowances or deductible costs might include the following:

• Estate agent fees, solicitor fees and Stamp Duty costs
• You may be eligible for Private Residence Relief and be able to reduce your tax bill if your second home was your main residence at some point
• You may be eligible for Letting Relief if you share occupancy with a tenant when you sell the property and you already qualify for Private Residence Relief

If you gift or transfer your second home to another person, you’ll also still be liable for Capital Gains Tax, which is normally determined by the market value of the property instead of the sale price.

Try out our calculator for Capital Gains Tax to estimate how much tax you might pay on profits from a second property.