Working out the gain
Sale price, minus selling costs (agent and legal fees), minus purchase price and buying costs (Stamp Duty, legal fees, survey), minus capital improvements. Repairs already claimed against rent can't be deducted again.
Which rate applies
Your gain sits on top of your taxable income for the year. Any part that fits within the basic rate band (£37,700 above the Personal Allowance) is taxed at 18%, and the rest at 24%. A large gain usually lands mostly at 24%.
If you once lived there
Private Residence Relief exempts the share of the gain for the time it was your main home, plus the final 9 months of ownership. Lettings relief now only applies if you shared the home with your tenant.
The 60-day rule
If tax is due, you must file a separate online return and pay an estimate within 60 days of completion. You also include the sale on your Self Assessment return, and any difference is settled there. Non-UK residents must report every UK property sale within 60 days, even with no tax due.
Reducing the bill legitimately
- Keep evidence of improvements.
- Spouses each have a £3,000 exemption and their own bands, and transfers between them are normally tax-free.
- Sell in a lower-income year.
- Offset capital losses.
Estimate your bill with the CGT calculator.
Frequently asked questions
Is CGT going up in 2027?
The Budget of 28 October 2026 made no change. Rates stay at 18% and 24% with a £3,000 exemption.
What if I miss the 60-day deadline?
HMRC charges late filing penalties and interest on late payment.
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.