United Kingdom · Capital gains tax on property
Capital Gains Tax on Inherited Property (UK) Calculator
Capital gains tax on inherited UK property is charged only on the growth since the date of death: the sale price less the probate value and allowable costs, after the £3,000 annual exempt amount, at 18 per cent within your basic-rate band and 24 per cent above. Nothing is due at the point of inheritance, and the sale must be reported within 60 days.
Selling a property you inherited. Your cost is the probate value at the date of death, so tax is due only on the growth since then, after the annual exempt amount.
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 |
- For inherited property, use the probate (date-of-death) value as the purchase price. There is no PRR unless you lived in it as your main home.
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 on an inherited property?
When you inherit a property there is no capital gains tax at the point of inheritance. Inheritance tax may apply to the estate, but that is separate. Capital gains tax only arises when you later sell, and the gain is measured from the probate value (the market value at the date of death), not the price the deceased originally paid. If you move in and it becomes your main home, Private Residence Relief can reduce the tax for that period.
What can you deduct from the gain?
The probate value at the date of death is the starting cost, and the estate’s own valuation figure is the one to use. On top of that, the costs of selling, such as estate agent and legal fees, and any capital improvements made since the death, come off the gain.
Probate fees and the cost of obtaining the grant are not deductible. Neither is ordinary maintenance, insurance or council tax paid while the property stood empty.
If you moved in and the property became your only or main home, Private Residence Relief covers that period plus the final 9 months, and the calculator applies it once you enter the years.
What does the tax actually come to?
The table below is produced by the same engine as the calculator above, at four gain sizes and the two income positions most people are in.
| Gain | Basic-rate seller | Higher-rate seller | Higher-rate couple, jointly owned |
|---|---|---|---|
| £20,000 | £3,618 | £4,080 | £3,360 |
| £50,000 | £10,818 | £11,280 | £10,560 |
| £100,000 | £22,818 | £23,280 | £22,560 |
| £200,000 | £46,818 | £47,280 | £46,560 |
Estimates for 2026/27, after the £3,000 annual exempt amount. A basic-rate seller here has £30,000 of other income, a higher-rate seller £60,000.
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?
- Using the price the deceased paid rather than the probate value. The cost is the market value at the date of death, which usually removes most of the gain.
- Assuming inheritance tax and capital gains tax are the same charge. They are separate: inheritance tax falls on the estate, capital gains tax on the growth after the death.
- Forgetting that a share inherited jointly is taxed per person, so each owner has their own annual exempt amount.
Common questions
What value do I use for inherited property?
Use the probate value, the market value at the date of death. The gain is the sale price minus that value and any allowable costs.
Do I pay capital gains tax and inheritance tax?
They are separate. Inheritance tax is charged on the estate. Capital gains tax applies only to the growth in value between the date of death and the date you sell.
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.