Free · UK
Capital gains tax calculator for property
Work out the tax on selling a rental, a second home or a home you inherited, with private residence relief for the years you lived there.
How it's worked out
Take the sale price, less the price paid, buying and selling costs and improvements.
Take off private residence relief for the years it was your home.
Take off the tax-free allowance for the year.
Tax the rest: the lower rate up to your basic rate band, the higher rate above.
Questions
How is the gain worked out?
The sale price less what the property cost you: the price you paid, the costs of buying and selling it (stamp duty, solicitors, the estate agent) and improvements such as an extension. Repairs, mortgage interest and running costs don't count; they were costs of the letting.
What if I inherited the property?
Use its value on the day the owner died (the probate value) as the price you paid. Only the rise since then is taxed.
I used to live there. Do I still pay?
Private residence relief takes off the share of the gain for the years it was your main home, plus the final months of ownership. Enter how long you owned it and how long you lived there, and the calculator works it out.
Why does my income matter?
The gain sits on top of your income for the tax year, rental profit included. The part that fits in your unused basic rate band pays the lower rate; the rest pays the higher rate.
When do I pay?
For a UK home, you report the sale to HMRC and pay the tax within 60 days of completion, through a capital gains tax on UK property account. It's separate from your tax return, though the sale still goes on that too.
More terms explained in the glossary.