Inherited Property CGT Calculator
Estimate Capital Gains Tax on selling an inherited house (2026/27)
Last updated: June 2026
Inherited Property CGT Calculator (2026/27)
Enter the probate (date-of-death) value and the sale figures to estimate the Capital Gains Tax due when you sell an inherited house or flat.
What this calculator does
When you inherit a property in the UK you do not pay Capital Gains Tax (CGT) on the inheritance itself – that is dealt with through Inheritance Tax on the estate. CGT only becomes relevant later, when you (or the estate) sell the property for more than its value at the date of death. The key figure most people get wrong is the base cost: it is the probate value (the market value on the date the person died), not what the deceased originally paid for the home. Your gain is the rise in value between probate and the eventual sale.
This calculator is for beneficiaries who have inherited a house or flat and want to know roughly how much CGT they will owe if they sell, and for personal representatives selling a property during the administration of an estate. It applies the 2026/27 residential property rates of 18% and 24%, the £3,000 annual exempt amount, and reminds you of the strict 60-day reporting and payment deadline. It is an estimate for guidance and does not replace advice from a tax adviser or solicitor.
How it works
The calculation follows HMRC's residential property CGT method:
- Gross gain = sale price − probate value − selling costs − qualifying capital improvements.
- Your share – if you inherited a percentage of the property, only that share of the gain is yours.
- Annual exempt amount – deduct the £3,000 tax-free allowance for 2026/27 to get the taxable gain.
- Rate (beneficiary) – the part of the gain that fits inside your unused basic-rate Income Tax band (band of £37,700, less income above the £12,570 personal allowance) is taxed at 18%; anything above that is taxed at 24%.
- Rate (estate / personal representative) – estates pay a flat 24% on residential property gains and also receive the £3,000 allowance for the tax year of death and the two following tax years.
If the property was ever your only or main home, Private Residence Relief may reduce or remove the tax – this tool assumes it was not your main residence.
Worked example
Sarah inherits her late father's house. The probate valuation was £250,000. Two years later she sells it for £350,000, paying £8,000 in estate agent and legal fees and having spent £2,000 on a qualifying capital improvement. She owns 100% and earns £60,000 a year (a higher-rate taxpayer).
- Gross gain = £350,000 − £250,000 − £8,000 − £2,000 = £90,000
- Taxable gain = £90,000 − £3,000 allowance = £87,000
- As a higher-rate taxpayer her basic-rate band is fully used by income, so the whole gain is taxed at 24%: £87,000 × 24% = £20,880
Sarah owes £20,880 in Capital Gains Tax and must report and pay it within 60 days of completion.
Frequently asked questions
Do I pay CGT when I inherit a property?
No. There is no Capital Gains Tax to pay simply for inheriting a property. Any tax on the estate is Inheritance Tax. CGT only arises if you later sell the property for more than its probate (date-of-death) value.
What value do I use as the cost of an inherited property?
You use the market value at the date of death – the probate value – as your base cost, not the price the deceased originally paid. The gain is the increase from that probate value to the sale price, less selling costs and qualifying improvements.
What are the CGT rates on inherited residential property in 2026/27?
For beneficiaries, gains within your unused basic-rate band are taxed at 18% and the rest at 24%. Estates and personal representatives pay a flat 24%. The annual exempt amount is £3,000.
How long do I have to report and pay the tax?
You must report the disposal and pay any CGT due within 60 days of completion using HMRC's "Capital Gains Tax on UK property" account. Late filing and payment attract penalties and interest.
Source: GOV.UK – Capital Gains Tax rates and allowances and GOV.UK – Report and pay Capital Gains Tax. Figures verified for the 2026/27 tax year.