United Kingdom · Capital gains tax on property
Buy-to-Let Capital Gains Tax (UK) Calculator
Capital gains tax on a UK buy-to-let is 18 per cent within your remaining basic-rate band and 24 per cent above it, on the gain after the £3,000 annual exempt amount. Relief applies only for years you lived there as your main home plus the final 9 months, and the tax must be reported and paid within 60 days of completion.
A rental property is taxed on the full gain. Relief applies only for any period the property was actually your main home, plus the final 9 months.
About 23.3% of your £100,000 gain. You keep roughly £76,720.
How we got this
| Sale price | £300,000 |
| Less purchase price | −£200,000 |
| Less costs and improvements | −£0 |
| Gain | £100,000 |
| No gain / no loss transfer | −£100,000 |
| Less Private Residence Relief | −£0 |
| Less annual exempt amount | −£3,000 |
| Taxable gain | £97,000 |
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Higher-rate band | £97,000 | 24% | £23,280 |
| Estimated CGT | £23,280 |
A UK residential sale with tax to pay must be reported and paid within 60 days of completion. For a sale completing today, that window runs to about 5 November 2026.
On these figures there is no capital gains tax to pay, so a UK resident does not need to file the 60-day property return. A non-resident must report a disposal of UK property whether or not any tax is due.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HMRC or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
Your figures are worked out in your browser. They are not sent to us or stored.
How much capital gains tax do I pay when I sell a buy-to-let?
A buy-to-let is taxed like a second home unless you lived in it at some point. Enter the total years owned, and any years it was genuinely your only or main home, and the calculator applies Private Residence Relief for that period plus the final 9 months. If you never lived there, leave that field at zero and the whole gain is chargeable. Allowable costs include buying and selling fees and capital improvements, but not ordinary repairs or mortgage interest.
What can you deduct, and what does living there change?
Buying and selling costs and capital improvements reduce the gain. Mortgage interest, repairs, insurance and letting agent fees do not: those are revenue expenses set against rental income, not against the gain.
The larger question is whether the property was ever your only or main home. If it was, relief covers that period plus the final 9 months, apportioned over the whole period of ownership.
| Years it was your main home | Private Residence Relief | Estimated tax |
|---|---|---|
| Never lived there | £0 | £47,280 |
| 2 years | £55,000 | £34,080 |
| 4 years | £95,000 | £24,480 |
| 6 years | £135,000 | £14,880 |
| 8 years | £175,000 | £5,280 |
A £200,000 gain on a property owned for 10 years, seller with £60,000 of other income. Relief covers the years of occupation plus the final 9 months.
When do you have to report and pay?
Within 60 days of completion, through an HMRC Capital Gains Tax on UK property account. The deadline runs from completion, not from exchange and not from the end of the tax year, and the tax is payable by the same date.
A return is still needed even when the estimate here comes to nothing, in some situations. A UK resident with no tax to pay generally does not have to file, but a non-resident must report every disposal of UK property whether or not any tax is due.
Missing the deadline brings an automatic penalty, and interest runs on the unpaid tax from the due date.
What do people most often get wrong?
- Leaving out a period of genuine occupation. Years the property was your only or main home earn relief, and so do the final 9 months.
- Deducting mortgage interest or the cost of repairs. Only capital costs count: buying and selling fees, and improvements.
- Assuming letting relief still applies broadly. Since April 2020 it only applies where the owner shared occupation with the tenant.
Common questions
Do I pay capital gains tax when I sell a buy-to-let?
Yes, on the gain above the annual exempt amount, at 18 per cent within your remaining basic-rate band and 24 per cent above it, unless part of the gain is covered by relief for time it was your main home.
Can I deduct mortgage interest from the gain?
No. Mortgage interest is not an allowable cost for capital gains tax. Only capital costs such as buying and selling fees and improvements reduce the gain.
What is the capital gains tax allowance for 2026 to 2027?
The annual exempt amount is £3,000 per person, or £6,000 for a couple who own the property jointly.
When must UK property capital gains tax be reported?
Within 60 days of completion, through an HMRC Capital Gains Tax on UK property account.