GeraCash / UK Capital Gains Tax / CGT on property
Capital Gains Tax on property 2025/26 — second homes & buy-to-let
How Capital Gains Tax applies to second homes and buy-to-let, why your main home is usually exempt, and the 18%/24% residential rates.
How much Capital Gains Tax do I pay when I sell a property?
You generally pay Capital Gains Tax when you sell a property that is not your main home — a second home or buy-to-let, for example. The gain above the £3,000 annual exempt amount is taxed at 18% within your basic-rate band and 24% above it. Your only or main home is normally exempt through Private Residence Relief.
Since 30 October 2024, residential property gains are taxed at the same 18%/24% rates as other assets — there is no longer a separate, higher property rate. As with any gain, HMRC stacks it on top of your income to decide how much falls in each band.
The gain is the sale price less what you paid and less allowable costs (for example buying and selling costs and the cost of improvements). The £3,000 annual exempt amount is then deducted before tax is calculated.
Your main residence usually qualifies for Private Residence Relief, so a gain on the home you live in is generally exempt from CGT. CGT on UK residential property that is not your main home must normally be reported and paid to HMRC within 60 days of completion — sooner than the usual Self Assessment deadline.
This page is information, not tax advice. Figures are the published HMRC rates for 2025/26.
Capital Gains Tax calculator
Enter your gain and other income to see the CGT due across the 18% and 24% bands.
Profit on the disposal, before the allowance
Salary etc. — decides the 18% vs 24% split
Total CGT due
£3,463.80
17.32% of the gain
Taxable gain
£17,000.00
after the £3,000.00 allowance
Gain after CGT
£16,536.20
what you keep
Uses HMRC's method: your gain (after the £3,000.00 annual exempt amount) is added on top of your taxable income — the part still inside the basic-rate band is taxed at 18%, the rest at 24%. Information only, not tax advice. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount.
Frequently asked questions
- Do I pay Capital Gains Tax when I sell my home?
- Usually not. Your only or main home normally qualifies for Private Residence Relief, so the gain is generally exempt. CGT typically applies to second homes and buy-to-let property.
- What is the Capital Gains Tax rate on property?
- 18% for gains within your basic-rate band and 24% above it, on the gain over the £3,000 annual exempt amount. These match the rates for other assets since 30 October 2024.
- When do I have to report CGT on a property sale?
- For UK residential property that is not your main home, CGT normally has to be reported and paid within 60 days of completion. Use the calculator above to estimate the tax first.
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Data source
Contains public sector information published by HM Revenue & Customs and licensed under the Open Government Licence v3.0. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount (Tax year 2025/26).
Rates and thresholds from GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount. Retrieved 2026-07-01. Calculations by Gera from the published HMRC rates — no figures are estimated.
More on Capital Gains Tax
- UK Capital Gains Tax rates — How the 18% and 24% Capital Gains Tax rates work, and how HMRC decides which one applies to your gain.
- Capital Gains Tax allowance (annual exempt amount) — The £3,000 tax-free Capital Gains Tax allowance every individual gets each year, and how it reduces the gain you pay tax on.
- Capital Gains Tax on shares — How Capital Gains Tax applies to shares and funds, the 18%/24% rates, and why ISA and pension holdings are exempt.