Capital Gains Tax calculator for rental property
Estimate the tax when you sell a buy-to-let or former home, and find the date you must report and pay HMRC.
Key facts
- Residential property gains are taxed at 18% within your basic rate band and 24% above it.
- Everyone has a £3,000 annual exempt amount (2026/27 and 2027/28).
- You must report and pay within 60 days of completion if tax is due.
- If you once lived in the property, the period you lived there plus the final 9 months can be exempt.
How the gain is worked out
Gain = sale price − selling costs − purchase price − buying costs − capital improvements. Repairs and maintenance you claimed against rental income can't be deducted again.
Your share of the gain then has Private Residence Relief taken off, if you ever lived there, and the £3,000 annual exempt amount. The rest uses up any basic rate band left after your income: 18% up to £37,700 of taxable income, then 24%.
Worked example
A buy-to-let bought for £200,000 (£8,000 buying costs) and sold for £300,000 (£5,000 selling costs), with £7,000 of improvements. The owner has £40,000 of income and never lived there.
| Step | Amount |
|---|---|
| Gain | £80,000 |
| Less annual exempt amount | −£3,000 |
| Taxable gain | £77,000 |
| £10,270 at 18% (basic band left) | £1,849 |
| £66,730 at 24% | £16,015 |
| CGT due within 60 days | £17,864 |
Legitimate ways to reduce the bill
- Keep receipts for improvements, such as extensions and loft conversions. They reduce the gain.
- Use both spouses' allowances. Each owner has their own £3,000 and their own basic rate band. Transfers between spouses are normally tax-free, but take advice before moving ownership.
- Time the sale. Selling in a year when your income is lower leaves more basic band at 18%.
- Use losses. Capital losses on other assets in the same year, or reported losses from earlier years, can be offset.
Assumptions
UK-resident individual. No other gains in the year. Lettings relief is not included: since 2020 it only applies where you shared occupancy with your tenant. Private Residence Relief is shown in simple form. Absence rules and part-use can change it.
Frequently asked questions
What is the CGT rate on property in 2026/27?
18% on the part of the gain within your basic rate band and 24% on the rest. These rates also apply in 2027/28, as the Budget of 28 October 2026 made no change.
When must I pay CGT on a property sale?
Within 60 days of completion, using HMRC's online Report and pay Capital Gains Tax on UK property service. Late reporting brings penalties and interest.
Do I pay CGT on my main home?
Usually not, thanks to Private Residence Relief. If you let it out for part of the time, the let period may be taxable. The last 9 months of ownership are always exempt if it was your main home at some point.
Sources
- GOV.UK: Capital Gains Tax rates and allowances
- GOV.UK: Report and pay Capital Gains Tax on UK property
- GOV.UK: Tax when you sell your home
- HM Treasury: Budget documents, 28 October 2026
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.