Capital Gains Tax on property · 2026/27
How much Capital Gains Tax will I pay on a property?
Selling a buy-to-let or a second home? The tax depends on your gain, the £3,000 allowance and how much of your basic-rate band your income leaves free — because the gain is taxed at 18% or 24% on top of your income. Put the numbers in below and see the CGT due. It runs entirely in your browser.
The sale
Enter what the property sold for, what you paid, and the costs you can deduct. Then add your income for the year — that's what decides how much of the gain is taxed at 18% versus 24%. Nothing is sent anywhere.
How CGT on a property works for 2026/27
Your gain is the sale price minus what you paid and minus your allowable costs — legal and agent fees, the Stamp Duty you paid on purchase, and capital improvements. Everyone gets a £3,000 Annual Exempt Amount tax-free; the rest is your taxable gain. That gain then stacks on top of your income: the part still sitting inside your basic-rate band is taxed at 18%, and anything above it at 24%.
| Where the gain falls | Residential property rate 2026/27 |
|---|---|
| Inside your remaining basic-rate band | 18% |
| Above the basic-rate band | 24% |
Because the gain sits on top of your income, a higher-rate taxpayer pays 24% on the whole taxable gain. Selling your own home is usually covered by Private Residence Relief and isn't taxed — this tool is for a second property such as a buy-to-let or holiday home.
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Common questions
What are the Capital Gains Tax rates on property for 2026/27?
After the £3,000 Annual Exempt Amount, a gain on residential property is taxed at 18% for the part that falls within your remaining basic-rate band and 24% for anything above it. Which applies depends on your other income, because the gain is taxed as the top slice on top of that income. A higher-rate taxpayer pays 24% on the whole taxable gain.
How much is the Capital Gains Tax allowance in 2026/27?
The Annual Exempt Amount is £3,000 for 2026/27 — the same as 2025/26. It's the amount of gains you can make across the tax year before any Capital Gains Tax is due. If your total gain after costs is under £3,000, there's no CGT to pay, though you may still need to report the disposal.
Do I pay CGT when I sell my own home?
Usually no. Selling the home you live in is normally covered by Private Residence Relief, so there's no Capital Gains Tax. This calculator is for a second property — a buy-to-let, an inherited house you didn't live in, or a holiday home — where the gain is taxable. If a property was your main home for only part of the time you owned it, part of the gain can still be relieved.
What costs can I deduct from the gain?
You can deduct the costs of buying and selling — solicitor and estate-agent fees, and the Stamp Duty Land Tax you paid when you bought — plus money spent on capital improvements such as an extension or a new kitchen where there wasn't one. You cannot deduct normal repairs and maintenance, or mortgage interest; those are either revenue expenses against rental profit or not allowable at all.
When do I have to report and pay CGT on a property?
For UK residential property you must report the disposal and pay the Capital Gains Tax within 60 days of completion, using a Capital Gains Tax on UK property account with HMRC. You also put the gain on your Self Assessment return for the year. Missing the 60-day deadline can mean penalties and interest.
Is the CGT rate different in Scotland?
No. Capital Gains Tax is a UK-wide tax, so the £3,000 allowance and the 18% / 24% residential rates are the same in Scotland. What differs is the Income Tax on your other income — Scottish taxpayers have different Income Tax bands — which can change how much of your gain falls into the 24% rate.
Selling up is only part of a landlord's tax year
The same year you sell, you still have rental profit, the Section 24 mortgage-interest restriction and your Self Assessment return to get right. Our spreadsheet toolkit pulls the whole picture together in Excel or Google Sheets you own — so you can see what a sale does to your bill before you commit.
- Rental Property ROI & Yield Calculator — yield, cash flow and return across your portfolio, personal versus company ownership.
- Self Assessment Tax Estimator 2026/27 — your full bill in one place: income tax, Class 4 NI, payments on account, month-by-month set-aside.
- Freelance Day-Rate & Profit Calculator — work back from the take-home you want.
- Invoice Tracker & Log — auto paid/outstanding/overdue, with a chase list.
Excel and Google Sheets. Working formulas, not just formatting. Built and checked by us, with AI assistance, and every calculation verified.
Get the Rental ROI & Yield Calculator — £9 →£9 on its own, or all four tools for £19, with a 14-day money-back guarantee.