Second Home CGT Calculator 2025/26 — Residential Property Capital Gains Tax

Residential property CGT rates from October 2024: 18% for basic rate taxpayers and 24% for higher or additional rate taxpayers. These rates replaced the previous 18%/28% rates. The rate depends on your total taxable income and gains in the tax year of the sale — if gains push you into the higher rate band, part of the gain may be taxed at 24%.

Allowable deductions: original purchase price, stamp duty land tax paid on purchase, legal fees (buying and selling), estate agent fees, surveyor fees, and the cost of capital improvements (not routine repairs or maintenance). You cannot deduct mortgage interest, insurance, or maintenance costs.

Yes — all sales of UK residential property by UK residents (since 27 October 2021) must be reported and the CGT paid within 60 days of the completion date via the HMRC UK Property Account (gov.uk/report-and-pay-your-capital-gains-tax). This applies even if you also report the same gain in your annual Self Assessment return. A separate standalone return is required.

If you lived in the property as your main home at any point, you can claim partial Principal Private Residence (PPR) relief. The exempt fraction is: (months as main home + last 9 months of ownership) ÷ total months owned. The 'final period exemption' of 9 months is automatic regardless of occupation. You cannot claim PPR on a property that was never your main home.

Lettings relief was significantly restricted from April 2020. It now only applies when the owner and tenant are in shared occupation (living in the property together). For most landlords who let their former main home while living elsewhere, lettings relief no longer applies. The maximum relief (when applicable) is the lowest of: the PPR relief amount, the gain from the lettings period, or £40,000.

For jointly-owned property, each owner's share of the gain is calculated separately. Each person can use their own annual exempt amount (£3,000 each), their own CGT rate (based on their individual income), and claim any applicable reliefs. Both owners must file a separate 60-day return after sale.

The annual exempt amount (AEA) for 2025/26 is £3,000 per individual. It is deducted from your total net capital gains (all assets, not just property) before tax is calculated. If you have capital losses from other sales in the year, these are deducted first, then the AEA. The AEA cannot be transferred to a spouse or carried back.

Yes — even if you have already filed a 60-day return, you must also report the sale on your annual Self Assessment return for the tax year in which completion occurred. HMRC reconciles the 60-day payment against the final Self Assessment liability. Any overpayment is refunded; any underpayment (e.g. due to higher rate tax) is collected through Self Assessment.