Use a tax calculator to work out UK capital gains
CGT calculator for UK Residential property & commercial property.
Before selling a UK residential property or commercial, it is wise to work out your HMRC Capital Gains Tax (CGT) liability and pay CGT to HMRC. Knowing this will help you take steps to reduce the tax bill you pay. Sadly, tax will be due when making a gain when selling an asset. Always get tax advice before you sell a residential property.
What is Capital Gains Tax (CGT) when selling a residential property?
It is paid to HMRC when you sell a buy-to-let for more than what you originally paid. You will need to work out your gain by comparing these two numbers less your annual exemption (£3,000 at the time of writing for 2024/2025).
It is based on the sale price of the property, less the original purchase cost and associated fees, and less the capitalised costs. The remaining amount is a gain.
How to use this calculator.
Step 1
Before you calculate anything, you need to have ready and at hand the original completion statements of the buy-to-let purchase/sale. This will be used as evidence for each number that you enter into our tool.
Step 2
You can offset all costs associated with the asset when refurbished (including items such as windows, doors, kitchens, bathroom suites, etc.). These costs are not already included in your self-assessment return. Ensure you collect your invoices together as evidence.
Step 3
Log the dates you purchased the home, whether you lived in it, rented or sold. This will be useful if you claim the Private Residence Relief on the sale.
Step 4
Estimate your income for the year you sell the buy-to-let. This will be required to pay the right amount of gains for basic rate and high rate taxpayers. Now you are ready to use our buy to let CGT calculator for precise calculations.
If you get stuck or need any advice, give us a call.
Our qualified CGT accountants provide an advice service to help you identify ways to reduce the tax before the asset is disposed of proactively.
When do you have to pay it?
CGT must be reported to HMRC and paid within 60 days of sale. CGT is based on the gain made, that is the difference between the buy-to-let sales price and the purchase price and the associated costs of the buy-to-let.
Read our article on how you can reduce the liability when selling a buy-to-let investment.
Yes, you could claim Private Residence Relief, also known as PRR, to reduce your CGT liability and pay it to HMRC.
Can I gift or give the property to my children to avoid paying?
Yes it is possible to gift a buy-to-let to a child without paying CGT.
A CGT tool for residential property sales is a tool that helps individuals estimate the amount of CGT they owe when selling a residential property that is not their primary residence.
The tool typically considers the purchase price, sale price, allowable expenses (such as legal fees and improvement costs), and any applicable tax reliefs or exemptions.
Individuals can find reliable tools on financial websites, HMRC's official website, or through services provided by financial advisors and tax professionals.