This page estimates UK Capital Gains Tax on residential property for the 2025-26 tax year. Capital Gains Tax on selling a UK residential property that is not your only or main home (the main home is usually covered by Private Residence Relief) in 2025-26. The calculator above is pre-filled with a realistic example and you can change every figure.
Worked example
On a £60,000 gain with £45,000 of other taxable income, CGT is £13,680 — £0 at 18% on the £0 sitting in the basic-rate band, plus £13,680 at 24% on the £57,000 above it, after the £3,000 allowance.
| Step | Amount |
|---|---|
| Capital gain | £60,000 |
| Less £3,000 annual exempt amount | −£3,000 |
| Taxable gain | £57,000 |
| Taxed at 18% (within basic-rate band) | £0 → £0 |
| Taxed at 24% (above basic-rate band) | £57,000 → £13,680 |
| CGT due | £13,680 |
| Net after CGT | £46,320 |
| Effective rate on the gain | 22.8% |
Your only or main home is normally fully covered by Private Residence Relief, so this applies to second homes, buy-to-lets and inherited property. A UK residential property gain that is taxable must be reported and paid within 60 days of completion using a HMRC Capital Gains Tax on UK property account.
60-day reporting: A taxable UK residential property gain must be reported and paid within 60 days of completion via HMRC’s Capital Gains Tax on UK property account. Missing the deadline triggers penalties and interest.
CGT rates & allowance — 2025-26
| Item | 2025-26 figure |
|---|---|
| Annual exempt amount (individuals) | £3,000 |
| Annual exempt amount (most trusts) | £1,500 |
| Main rate — gains within unused basic-rate band | 18% |
| Main rate — gains above basic-rate band | 24% |
| Residential property — basic / higher | 18% / 24% |
| Trustees & personal representatives | 24% |
| Business Asset Disposal Relief | 14% (lifetime limit £1,000,000) |
| Basic-rate band split point (taxable income) | £37,700 |
The main 18% / 24% rates apply to all chargeable assets for disposals on or after 30 October 2024, so they cover the whole 2025-26 tax year. Your gain is stacked on top of your taxable income: the part still within the £37,700 basic-rate band is taxed at 18%, and the rest at 24%.
How CGT is worked out
- Gain = disposal proceeds − cost − allowable expenses.
- Subtract the £3,000 annual exempt amount (per person, can’t be carried forward).
- Stack on income: taxable income up to £37,700 uses the basic-rate band; the unused part is available for the gain at 18%.
- Apply the rates: 18% within the remaining basic-rate band, 24% above.
Sources & as-of
- Annual exempt amount (£3,000) and rates: GOV.UK — Capital Gains Tax rates and allowances.
- 18% / 24% main rates effective 30 October 2024: GOV.UK — Capital Gains Tax rates of tax.
- Business Asset Disposal Relief 14% from 6 April 2025: HMRC CG63515.
- Income Tax thresholds (£12,570 / £37,700 / £50,270): GOV.UK — Personal Allowance and basic rate limit 2022–2026.
- 60-day property reporting: GOV.UK — Report and pay CGT.
- Page data as-of 2026-06-18. This is a planning estimate, not tax advice. Share-matching/pooling, reliefs and losses can change your gain — confirm your position on GOV.UK or with an adviser. Rates can change at fiscal events.