Letting Relief Calculator UK 2026

Calculate letting relief on Capital Gains Tax when selling a property you previously lived in and then rented out. Find the restricted relief available post-April 2020.

£0
CGT saving from letting relief
PPR gain exempt: £0
Letting relief (max £40k): £0
Taxable gain: £0
CGT payable: £0

Frequently Asked Questions

What is letting relief for Capital Gains Tax?

Letting relief is a CGT exemption available when you sell a property that you have lived in as your main home (qualifying for Private Residence Relief) and also rented out during periods of absence. Before April 2020, letting relief could exempt up to £40,000 of gain. From April 2020, letting relief was significantly restricted and now only applies when the owner is in shared occupancy with the tenant.

Who still qualifies for letting relief after April 2020?

After 6 April 2020, letting relief only applies if the property owner was living in the property at the same time as the tenant — i.e., they shared occupation (like a lodger arrangement). If you left the property entirely and rented it out, you no longer qualify for letting relief, even if you had lived there before. This change significantly reduced the relief available for typical 'accidental landlords'.

How does Private Residence Relief differ from Letting Relief?

Private Residence Relief (PPR) exempts the gain attributable to periods when the property was your main home (plus the final 9 months of ownership). Letting Relief is an additional relief that could further reduce the gain from letting periods — but only if the letting conditions are met. Most sellers can still claim full or partial PPR even if letting relief is not available.

What is the final period exemption for CGT on property?

The final 9 months of ownership of a property that was at some point your main home automatically qualify for PPR — even if you have moved out and are renting it. This was reduced from 18 months in April 2020 (and from 36 months before 2014). Disabled owners or those moving to a care home retain a 36-month final period exemption.

How do I report CGT on a residential property sale?

Capital gains on UK residential property must be reported to HMRC within 60 days of completion using the online Real Time CGT reporting service (on the HMRC website). Any tax due must also be paid within 60 days. Failure to report and pay on time incurs automatic penalties and interest. The gain should also be reported on your Self Assessment return for the tax year.