CGT on Property Calculator
Calculate capital gains tax on residential property disposals for 2026/27. Includes PPR relief, lettings relief, AEA and 18%/24% rates.
Last updated: March 2026
CGT Property Calculator 2026/27
Calculate your capital gains tax liability on the sale of a residential property with full relief calculations
CGT Residential Property Rates 2026/27
| Taxpayer Band | CGT Rate (Residential) | Applicable From |
|---|---|---|
| Basic rate taxpayer | 18% | 30 October 2024 |
| Higher / additional rate taxpayer | 24% | 30 October 2024 |
| Non-UK resident (NRCGT) | 18% / 24% | All disposals |
Annual Exempt Amount 2026/27
| Taxpayer Type | AEA 2026/27 |
|---|---|
| Individual | £3,000 |
| Jointly-owned property (2 owners) | £6,000 combined |
| Trusts | £1,500 |
Expert Guide: Capital Gains Tax on Residential Property 2026/27
1. How Private Residence Relief (PPR) Works
PPR exempts the proportion of gain attributable to the period you occupied the property as your only or main residence. The relief fraction is calculated as: (Months as main residence + 9 final months) ÷ Total months of ownership. The additional 9-month final period applies automatically regardless of whether you are still living there — this is designed to allow time to sell without losing relief. If you have owned the property for 10 years and lived in it for 6, the PPR fraction would be (72 + 9) ÷ 120 = 67.5%, shielding that proportion of the gain from CGT completely.
The 9-month rule (formerly 18 months) was reduced in April 2020. Disabled persons and those in a care home retain the 36-month period. PPR only applies to one property at a time — you cannot claim full relief on two homes simultaneously without making a formal nomination.
2. Lettings Relief — Post-April 2020 Rules
Since 6 April 2020, lettings relief is only available where the owner shared occupancy with the tenant — meaning a lodger lived in your home while you were also living there. The old "absentee landlord" relief was abolished. The maximum relief available is the lowest of three amounts: (a) the amount of PPR relief given, (b) £40,000 per owner, or (c) the gain attributable to the letting period. Most buy-to-let landlords who have moved out receive zero lettings relief under these rules. Shared-ownership situations where the owner retains part of the home may still qualify.
3. What Costs Can You Deduct?
You can deduct the following from your gain: Purchase price (or probate value if inherited); Buying costs — SDLT, solicitor fees, survey fees, valuation; Selling costs — estate agent commission (typically 1–3%), conveyancing; Improvement costs — capital expenditure that adds value (extensions, loft conversions, new kitchens where entirely replacing) but NOT repairs and maintenance. Mortgage interest is NOT deductible for CGT purposes (unlike income tax where it is also restricted). Always keep invoices for improvements — HMRC may challenge claims without evidence.
4. Non-UK Residents and NRCGT
Non-UK residents have been subject to CGT on UK residential property since April 2015 (extended to commercial property from April 2019). The Non-Resident Capital Gains Tax (NRCGT) regime operates at the same rates as for UK residents: 18% or 24% for residential property. Non-residents must still report within 60 days of completion even if no tax is due. The base cost for non-residents is rebased to April 2015 values by default — meaning only gains accruing after that date are taxed — but you can elect for time-apportionment or straight-line apportionment instead.
If you become UK resident within 5 years of disposal, additional CGT may arise. Double taxation treaties may provide relief for some countries.
5. The 60-Day Reporting Deadline
Since 27 October 2021, UK residents must report and pay CGT on UK residential property within 60 days of completion (the date you hand over the keys). The report is made via HMRC's 'Report and pay CGT on UK property' service (separate from Self Assessment). An estimated payment is made at the time — any under or overpayment is reconciled through your annual Self Assessment return. Penalties apply for late filing: £100 automatic penalty from day 61, increasing to £300 or 5% of tax (whichever is higher) after 6 months.
6. PPR Election for Two Homes
If you own two or more properties at the same time, only one can be your "main residence" for PPR purposes at any given time. You can make a formal election to HMRC to nominate which property qualifies — this must be done within 2 years of acquiring the second property. Strategic use of nominations allows you to vary PPR between properties to minimise overall CGT. For example, you might briefly nominate a property with larger unrealised gains before selling. HMRC's guidance (CG64485) covers the nomination rules in detail.
7. Shared Ownership and Part-Disposals
When you sell shared ownership property, a part-disposal formula applies: A ÷ (A + B), where A is the consideration received and B is the market value of the unsold interest. This proportionate rule ensures you only pay CGT on the fraction of the asset disposed of. For staircasing transactions (buying additional shares), each transaction is a separate disposal. PPR applies to all tranches if the property is your main home throughout. Shared ownership schemes operated by housing associations have specific CGT treatment — always verify with the scheme provider.
8. Reducing Your CGT Bill — Legitimate Strategies
Use your AEA: Each individual has £3,000. Jointly-held assets allow both partners to use their AEA. Transfer between spouses: Assets transferred between spouses/civil partners are at no gain/no loss, so you can move assets to a lower-rate spouse before sale. Time the disposal: If you are near the higher rate threshold, deferring a sale to a new tax year could reduce the rate. Pension contributions: Making a pension contribution in the year of disposal extends the basic rate band, potentially reducing the rate on part of the gain. Gift Aid: Same effect as pension — extends basic rate band pound for pound.
Worked Examples: CGT on Property 2026/27
Example 1: Buy-to-Let Sold After 10 Years
Property purchased for £200,000, sold for £380,000. Never used as main residence. Buying costs £7,000, selling costs £8,000. Higher rate taxpayer.
- Gross gain: £380,000 − £200,000 − £7,000 − £8,000 = £165,000
- PPR relief: None (never main residence)
- Less AEA: £3,000
- Taxable gain: £162,000
- CGT at 24%: £38,880
Example 2: Former Home Now Let — Full PPR Plus Lettings Relief
Property owned 10 years. Lived in for 6 years, then let for 4 years (shared occupancy as lodger for 2 of those years). Total gain £120,000. Higher rate taxpayer.
- PPR fraction: (72 months + 9 final months) ÷ 120 months = 67.5%
- PPR relief: 67.5% × £120,000 = £81,000
- Remaining gain: £39,000
- Lettings relief: min(£81,000, £40,000, £39,000) = £39,000
- Less AEA: £3,000 (but already nil gain remaining after lettings relief)
- Taxable gain: £0
- CGT due: £0
Example 3: Non-UK Resident Selling UK Property
Bought April 2013 for £300,000. April 2015 rebased value: £350,000. Sold March 2026 for £550,000. Never lived in property. Higher rate taxpayer.
- Taxable gain (from April 2015 rebased value): £550,000 − £350,000 = £200,000
- Less AEA: £3,000
- Taxable gain: £197,000
- NRCGT at 24%: £47,280
- Must report within 60 days of completion
CGT Property: Key Rules Reference
| Rule / Parameter | 2026/27 Value |
|---|---|
| Basic rate CGT (residential) | 18% |
| Higher rate CGT (residential) | 24% |
| Annual Exempt Amount | £3,000 |
| PPR final period exemption | 9 months |
| Maximum lettings relief | £40,000 |
| 60-day reporting window | 60 days from completion |
| NRCGT rebase date | 5 April 2015 |
Disclaimer: This calculator provides estimates based on published HMRC CGT rates for 2026/27. It is intended for informational purposes only and does not constitute professional tax advice. CGT calculations involve complex rules including interaction with income tax bands, losses, and specific reliefs. Always consult a qualified tax adviser or accountant for your specific situation.
People Also Ask
💡 Pro Tips for Accurate Results ▼
- Enter improvement costs only — not repairs or decorating
- Use total years (including fractions) for most accurate PPR fractions
- Lettings relief post-2020 only applies if you shared occupancy with tenant
- Consider whether pension contributions or Gift Aid could reduce your rate
Official Sources
Last updated: March 2026 | Verified with latest HMRC CGT rates