UK Capital Gains Tax Calculator

How is Capital Gains Tax calculated?


Private Residence Relief also referred to as PRR provides a UK Capital Gains Tax (CGT) exemption for the time they lived in the property (home). There is an additional nine (9) months CGT allowance if you moved out of the property and later sold it. The United Kingdom's Capital Gains Tax is levied on the profit made when selling assets like property or investments. The tax rate varies based on the individual's income tax band, with specific reliefs and exemptions available in certain circumstances. Please note that the annual CGT exemption is £6,000 for 2022/23 and £3,000 for 2023/24

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.

It is important to know How UK Capital Gains Tax is calculated?” CGT is based on the sales price of the property, less the original purchase cost and associated fees, and less the capitalised costs. The remaining amount is a capital gain.

How to use our free UK CGT Calculator

Please note that the online tax calculators may not look right on a mobile device. You are recommended to view it on a desktop/laptop.

How to calculate Capital Gains Tax

We have created a calculator to help you work out your gain on the sale of your residential buy-to-let or commercial property. Reviewing the links above should help you find new ways to reduce your HMRC capital gains liability.

Before selling an asset, it is wise to work out your HMRC Capital Gains Tax (CGT) liability before selling. By doing this, we can help you reduce the amount you pay.

– Collect all your original completion statements of the buy-to-let purchase/sale. This will be used as evidence for each number that you enter into our CGT calculator

– Retrieve all your capital costs of the asset when it was refurbished (includes items such as windows, doors, kitchens, bathroom suites etc.). These are costs not already put through on your self-assessment return. Ensure you collect your invoices together as evidence.

– Log the dates you purchased the home, lived in, rented and sold. This will be useful if you claim the Private Residence Relief on the sale.

– Estimate your income for the year you sell the buy-to-let. This will be required to pay the right amount of capital gains for basic rate and high rate taxpayers.

Landlords must CGT before the asset is sold. Our CGT accountants can work out ways to proactively reduce the tax before the asset is disposed of using our calculator tool.

Property CGT calculation methodology

We are delighted to provide you with a free calculator to work out your capital gains tax UK (CGT) liability that you must report and pay to HMRC within 60 days of sale. CGT is based on the gain made, which is the difference between the buy-to-let sales price and the purchase price & associated costs of the buy-to-let.

We have written an article on how you can reduce the Capital Gains Tax (CGT) liability when selling a buy-to-let investment. If you lived in the house sold, you could claim Private Residence Relief, also known as PRR, to reduce your CGT liability to be paid to HMRC. It is also possible to gift a buy-to-let to a child without paying CGT. Did you also know that you can use a deed of trust to split the gains between husband/wife/civil partners to utilise their annual CGT exemptions?

Please do not forget that you can roll over a capital gain on a Furnished Holiday Let.

Remember to calculate UK CGT before the asset is sold. Once calculated, you should speak with a specialist to see how CGT may be reduced.

Residential Vs commercial property

Landlords that have CGT on residential property will pay 18% as a basic rate taxpayer and 28% as a high rate taxpayer.

However,  landlords that have a capital gains tax on commercial property pay less. Basic rate taxpayers pay 10%, but high rate taxpayers pay 20%.

There is an 8% CGT difference for CGT on commercial Vs commercial. The difference may be seen in our calculator tool.

FAQ

What is Capital Gains Tax?

Property CGT is based on the sales price of the property, less the original purchase cost and associated fees, less the capitalised costs. The remaining amount is a capital gain. HMRC will tax that Capital Gain.

How is Capital Gains Tax calculated

Property CGT is based on the sales price of the property, less the original purchase cost and associated fees, less the capitalised costs. The remaining amount is a capital gain. HMRC will tax that Capital Gain.

How can you reduce Capital Gains Tax?

CGT is optional and there are many ways in which you can avoid Capital Gains Tax. Private Residence Relief (PRR), Enterprise Investment Schemes (EIS) and deeds of trust are just a few examples.

Our free online Capital Gains Tax (CGT) tax calculator when selling a buy-to-let residential property. See how much tax you need to calculate and pay to HMRC. We help you understand how this tax is calculated by HMRC though our simple calculation tool

 

How is Capital Gains Tax calculated?


Private Residence Relief also referred to as PRR provides a UK Capital Gains Tax (CGT) exemption for the time they lived in the property (home). There is an additional nine (9) months CGT allowance if you moved out of the property and later sold it. The United Kingdom's Capital Gains Tax is levied on the profit made when selling assets like property or investments. The tax rate varies based on the individual's income tax band, with specific reliefs and exemptions available in certain circumstances. Please note that the annual CGT exemption is £6,000 for 2022/23 and £3,000 for 2023/24

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.

It is important to know How UK Capital Gains Tax is calculated?” CGT is based on the sales price of the property, less the original purchase cost and associated fees, and less the capitalised costs. The remaining amount is a capital gain.

How to use our free UK CGT Calculator

Please note that the online tax calculators may not look right on a mobile device. You are recommended to view it on a desktop/laptop.

How to calculate Capital Gains Tax

We have created a calculator to help you work out your gain on the sale of your residential buy-to-let or commercial property. Reviewing the links above should help you find new ways to reduce your HMRC capital gains liability.

Before selling an asset, it is wise to work out your HMRC Capital Gains Tax (CGT) liability before selling. By doing this, we can help you reduce the amount you pay.

– Collect all your original completion statements of the buy-to-let purchase/sale. This will be used as evidence for each number that you enter into our CGT calculator

– Retrieve all your capital costs of the asset when it was refurbished (includes items such as windows, doors, kitchens, bathroom suites etc.). These are costs not already put through on your self-assessment return. Ensure you collect your invoices together as evidence.

– Log the dates you purchased the home, lived in, rented and sold. This will be useful if you claim the Private Residence Relief on the sale.

– Estimate your income for the year you sell the buy-to-let. This will be required to pay the right amount of capital gains for basic rate and high rate taxpayers.

Landlords must CGT before the asset is sold. Our CGT accountants can work out ways to proactively reduce the tax before the asset is disposed of using our calculator tool.

Property CGT calculation methodology

We are delighted to provide you with a free calculator to work out your capital gains tax UK (CGT) liability that you must report and pay to HMRC within 60 days of sale. CGT is based on the gain made, which is the difference between the buy-to-let sales price and the purchase price & associated costs of the buy-to-let.

We have written an article on how you can reduce the Capital Gains Tax (CGT) liability when selling a buy-to-let investment. If you lived in the house sold, you could claim Private Residence Relief, also known as PRR, to reduce your CGT liability to be paid to HMRC. It is also possible to gift a buy-to-let to a child without paying CGT. Did you also know that you can use a deed of trust to split the gains between husband/wife/civil partners to utilise their annual CGT exemptions?

Please do not forget that you can roll over a capital gain on a Furnished Holiday Let.

Remember to calculate UK CGT before the asset is sold. Once calculated, you should speak with a specialist to see how CGT may be reduced.

Residential Vs commercial property

Landlords that have CGT on residential property will pay 18% as a basic rate taxpayer and 28% as a high rate taxpayer.

However,  landlords that have a capital gains tax on commercial property pay less. Basic rate taxpayers pay 10%, but high rate taxpayers pay 20%.

There is an 8% CGT difference for CGT on commercial Vs commercial. The difference may be seen in our calculator tool.

FAQ

What is Capital Gains Tax?

Property CGT is based on the sales price of the property, less the original purchase cost and associated fees, less the capitalised costs. The remaining amount is a capital gain. HMRC will tax that Capital Gain.

How is Capital Gains Tax calculated

Property CGT is based on the sales price of the property, less the original purchase cost and associated fees, less the capitalised costs. The remaining amount is a capital gain. HMRC will tax that Capital Gain.

How can you reduce Capital Gains Tax?

CGT is optional and there are many ways in which you can avoid Capital Gains Tax. Private Residence Relief (PRR), Enterprise Investment Schemes (EIS) and deeds of trust are just a few examples.

Our free online Capital Gains Tax (CGT) tax calculator when selling a buy-to-let residential property. See how much tax you need to calculate and pay to HMRC. We help you understand how this tax is calculated by HMRC though our simple calculation tool

 

Book a call to see how we can help you.

Trustpilot

Consultation options.

We offer the two following options for initial consultations.

CALL OPTION ONE

Our Ongoing Accountancy Services

We charge on a fixed monthly fee

  • - Accounts submitted to HMRC & Companies House

  • - Tax support when needed (no extra charge)

  • - An holistic review of your tax structure and future plans

  • - Annual tax return review to discuss future tax plans

CALL OPTION TWO

Tax Call + Report + Video Recording

Want tax advice right now? Book today

  • - Upload your questions in advance

  • - A qualified tax advisors discuss the very best solution with you

  • - A tax report & meeting recording is sent within 48 hours

  • - Clarification questions are answered via email

Booking your appointment.