Holiday Let CGT Calculator UK 2025/26

Reviewed by Mustafa Bilgic
UK Calculator Editor · Updated May 2026

CGT on holiday let sales after FHL abolition

Until 6 April 2025, properly qualifying Furnished Holiday Lets enjoyed special CGT treatment: 10% rate under Business Asset Disposal Relief (lifetime limit £1m), Rollover Relief, Holdover Relief on gifts, and the right to count gains as 'business assets' for various other reliefs.

From 6 April 2025 the FHL category ends. Holiday lets are residential property for CGT, so the 18% basic-rate / 24% higher-rate residential rates apply, with no BADR. The £3,000 annual exempt amount applies before the rate.

Transitional planning

Owners considering a sale should weigh: (a) closing the sale before 6 April 2025 to lock in 10% BADR; (b) splitting ownership with a basic-rate spouse pre-sale to access two AEAs and a slice at 18%; (c) using a private deed of sale at no-gain-no-loss between spouses; (d) holding pending future relief changes.

BADR has a £1m lifetime limit per individual. Owners with several FHLs should plan to use the relief before 6 April 2025 — anything above will be taxed at standard rates anyway.

Higher-rate sale at £130k gain

Pre-2025 BADR: 10% × £127,000 = £12,700. Post-2025: 24% × £127,000 = £30,480. Cost of FHL abolition: £17,780.

Spousal split before sale

£200,000 gain. Solo higher-rate sale: 24% × £197,000 = £47,280. Split 50/50 with basic-rate spouse: each £100k gain → AEA × 2 = £6,000 free → £97k each. Spouse A higher: 24% × £97k = £23,280. Spouse B basic: 18% × £97k = £17,460. Total £40,740. Saving £6,540.

Long-term FHL with £400k gain in 2024/25

Sold March 2025: BADR 10% × £397k = £39,700. Sold May 2025: 24% × £397k = £95,280. The 2-month delay costs £55,580.

Common mistakes to avoid

• Believing BADR still applies post-April 2025 — it doesn't.
• Forgetting the 60-day reporting deadline and incurring penalties.
• Treating FHL CGT as commercial — it's residential property post-2025 with the higher 24% rate.
• Overlooking the spousal transfer no-gain-no-loss option to double the AEA and use a basic-rate slice.
• Confusing FHL with company-held property — companies pay corporation tax on gains, not personal CGT, and FHL abolition does not affect them.

When to use this calculator

Critical for FHL owners planning disposals around the April 2025 cliff edge. Run pre and post scenarios to quantify the cost of timing.

How this differs in Scotland, Wales and Northern Ireland

FHL abolition is UK-wide. Scottish higher-rate income taxpayers face the same UK-wide CGT rates (18%/24%) but allocate gain to bands based on Scottish income tax thresholds.

When this calculator is and isn't the right tool

The Holiday Let CGT Calculator UK 2025/26 above is built for the most common UK 2025/26 scenarios in this tax area. It will be the right tool when your situation maps cleanly onto the inputs — single property or simple aggregation, standard HMRC rates and bands, and individual taxpayer (rather than complex trust or partnership structures). It is informational and does not replace tailored advice from a chartered tax adviser, especially for transactions above £500,000, cross-border situations, or where reliefs interact with each other. For year-end filings, always reconcile with HMRC's own free calculators on gov.uk before pressing submit on Self Assessment.

Closely related calculators

• FHL Tax Calculator — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• CGT on Property — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• CGT on Property (legacy) — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Landlord Tax — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.
• Property Flipping Tax — useful when you need a different angle on the same UK property tax topic, especially if your situation involves multiple types of property income or disposal.

Glossary of UK property tax terms

CGT

Capital Gains Tax — UK tax on profit from selling assets, including residential property.

AEA

Annual Exempt Amount — £3,000 in 2025/26, deducted from gain before tax.

PRR

Private Residence Relief — exempts gains on the period a property was your only or main residence.

BADR

Business Asset Disposal Relief — formerly Entrepreneurs' Relief, 10% rate. Not available on residential property.

60-day rule

UK residential property CGT must be reported and paid within 60 days of completion via HMRC online.

Tax planning checklist

1. Confirm the figures input above match your actual position — purchase contract, mortgage offer or completion statement.
2. Cross-check the year (2025/26) — figures change every April. The tax year 2026/27 starts 6 April 2026.
3. Use HMRC's official calculator at gov.uk for the final filing figure; this calculator is informational.
4. Keep records for at least 6 years — HMRC's normal enquiry window. 21 years for fraud investigations.
5. Discuss any unusual transaction (joint purchase, gift, divorce settlement, trust) with a qualified tax adviser.
6. Submit your return online via Government Gateway — paper deadlines are earlier and penalties harsher.