Capital Gains Tax Calculator
Calculate your capital gains tax liability on property sales with our professional calculator. Account for purchase price, selling costs, improvements, available reliefs, and your tax band. Updated with the latest tax rates and annual allowance.
Calculate Your Capital Gains Tax
Your Capital Gains Tax Calculation
Total CGT Due
£0
Effective Tax Rate
0%
Calculation Breakdown
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Important Notes
- CGT rates for 2024/25: 18% (basic rate) or 28% (higher/additional rate) on residential property
- Annual CGT allowance is £6,000 for 2024/25
- Private Residence Relief available for periods of occupation
- Last 9 months of ownership always qualify for relief
Frequently Asked Questions
Common questions about capital gains tax on property
How is capital gains tax calculated on property?
Capital gains tax is calculated by subtracting the purchase price and allowable costs (improvements, buying and selling costs) from the sale price. The annual CGT allowance (£6,000 for 2024/25) is then deducted. The remaining gain is taxed at 18% for basic rate taxpayers or 28% for higher/additional rate taxpayers on residential property.
What is Private Residence Relief?
Private Residence Relief (PRR) exempts you from CGT for the period you lived in the property as your main residence. The final 9 months of ownership always qualify, even if you weren't living there. If you let the property after living in it, you may also qualify for Lettings Relief. PRR can significantly reduce or eliminate your CGT liability.
What costs can I deduct when calculating CGT?
You can deduct the original purchase price, buying costs (stamp duty, legal fees, surveys), selling costs (estate agent fees, legal fees), and improvement costs (extensions, new kitchen, etc.). Regular maintenance and decorating costs can't be deducted. Keep all receipts as evidence of improvement costs.
When do I need to pay capital gains tax?
Since April 2020, you must report and pay CGT on UK residential property within 60 days of completion using HMRC's online service. You'll also need to include the gain on your Self Assessment tax return if you complete one. Late reporting or payment can result in penalties and interest charges.
Can I reduce my capital gains tax liability?
Yes, there are several ways to reduce CGT: use your annual allowance (£6,000 for 2024/25), claim Private Residence Relief if you lived in the property, transfer part ownership to a spouse/civil partner (who has unused allowance), spread sales across tax years to use multiple annual allowances, or claim Lettings Relief if eligible.