Capital Gains Tax Calculator UK 2026
Calculate your property capital gains tax liability with 2025/26 rates
Understanding Capital Gains Tax on Property
Capital Gains Tax (CGT) is payable on the profit made when you sell a property that isn't your main home. The amount of CGT you pay depends on your total annual income and the taxable gain from the sale.
Key changes for 2025/26: The annual exempt amount has been reduced significantly from £12,300 to just £3,000. This means more property investors are now liable for CGT on their gains.
60-day reporting rule: If you sell a UK residential property, you must report the sale to HMRC and pay any CGT due within 60 days of completion. Failure to do so can result in penalties and interest charges.
Residential property rates: Higher and additional rate taxpayers pay 24% CGT on residential property gains, while basic rate taxpayers pay 18%. This makes property investment less attractive for higher-rate earners in high-value areas.
Frequently Asked Questions
What is the capital gains tax allowance for 2025/26?
The annual exempt amount for 2025/26 is £3,000 per person. This means the first £3,000 of gains above your cost basis is tax-free.
What are the CGT rates for property?
For residential property, the CGT rate is 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers. This applies to gains above the annual exempt amount.
Do I pay CGT on my main residence?
Generally no - you get Principal Private Residence (PPR) relief which eliminates CGT on your main home. However, this relief is reduced if you've let the property or used it for business.
When do I need to pay CGT?
For property sales, you must report and pay CGT within 60 days of completion. Your solicitor should withhold this from the sale proceeds if applicable.
Can I reduce my CGT bill?
Yes - you can deduct allowable costs like purchase/sale legal fees, agent fees, and improvement costs. You can also use your annual exempt amount and offset losses against gains.
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