UK Capital Gains Tax Calculator (CGT)

Use a tax calculator to work out capital gains

Before selling an asset, it is wise to work out your HMRC Capital Gains Tax (CGT) liability before selling. Knowing this will help you take steps to reduce the amount you pay.

The CGT calculator (UK) on this page will help you work out CGT using your gain on the sale of your residential buy-to-let or commercial property. It serves as a capital gains tax estimator to give you the best idea of your potential tax liabilities.

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.

How is capital gains tax calculated?

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 capital gain.

How to use a capital gains tax 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 capital gains tax estimator.

Step 2

You can get rid of 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.

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 capital gains for basic rate and high rate taxpayers. Now you are ready to use our buy to let capital gains tax calculator for precise calculations.

If you get stuck or need any advice, give us a call.

Our qualified CGT accountants can work out ways to proactively reduce the tax before the asset is disposed of.

CGT calculator for UK property

When do you have to pay capital gains tax?

Capital gains tax UK (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.

How can I reduce the amount of tax I need to pay?

Read our article on how you can reduce the Capital Gains Tax (CGT) liability when selling a buy-to-let investment.

Do I have to pay if I lived in the property I sold?

Yes you could claim Private Residence Relief, also known as PRR, to reduce your CGT liability to be paid 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.

Can I share the property with my partner and use their capital gains tax allowance?

Yes it is possible via the use a deed of trust to split the gains between husband/wife/civil partners to utilise their annual CGT exemptions.

Are there special rules for furnished holiday lets?

Yes it is good to know that you can roll over a capital gain on a Furnished Holiday Let.

How to calculate CGT on property as a landlord – are there different rates?

Landlords that have CGT on residential property will pay 18% as a basic rate taxpayer and 24% as a higher rate taxpayer (April 2024)

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 the calculator.

Why should I calculate taxable capital gain before I sell?

We strongly advise calculating UK CGT before the asset is sold as the clock starts ticking from the moment of the sale. After you have used the calculator and have everything to have it is a good idea to speak with a trained specialist to see how much money you can save by reducing CGT.

With over 20 years experience in UK and International property tax, why not book a call with one of our team today to find out how much money you could potentially save. of

Use a tax calculator to work out capital gains

Before selling an asset, it is wise to work out your HMRC Capital Gains Tax (CGT) liability before selling. Knowing this will help you take steps to reduce the amount you pay.

The CGT calculator (UK) on this page will help you work out CGT using your gain on the sale of your residential buy-to-let or commercial property. It serves as a capital gains tax estimator to give you the best idea of your potential tax liabilities.

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.

How is capital gains tax calculated?

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 capital gain.

How to use a capital gains tax 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 capital gains tax estimator.

Step 2

You can get rid of 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.

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 capital gains for basic rate and high rate taxpayers. Now you are ready to use our buy to let capital gains tax calculator for precise calculations.

If you get stuck or need any advice, give us a call.

Our qualified CGT accountants can work out ways to proactively reduce the tax before the asset is disposed of.

CGT calculator for UK property

When do you have to pay capital gains tax?

Capital gains tax UK (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.

How can I reduce the amount of tax I need to pay?

Read our article on how you can reduce the Capital Gains Tax (CGT) liability when selling a buy-to-let investment.

Do I have to pay if I lived in the property I sold?

Yes you could claim Private Residence Relief, also known as PRR, to reduce your CGT liability to be paid 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.

Can I share the property with my partner and use their capital gains tax allowance?

Yes it is possible via the use a deed of trust to split the gains between husband/wife/civil partners to utilise their annual CGT exemptions.

Are there special rules for furnished holiday lets?

Yes it is good to know that you can roll over a capital gain on a Furnished Holiday Let.

How to calculate CGT on property as a landlord – are there different rates?

Landlords that have CGT on residential property will pay 18% as a basic rate taxpayer and 24% as a higher rate taxpayer (April 2024)

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 the calculator.

Why should I calculate taxable capital gain before I sell?

We strongly advise calculating UK CGT before the asset is sold as the clock starts ticking from the moment of the sale. After you have used the calculator and have everything to have it is a good idea to speak with a trained specialist to see how much money you can save by reducing CGT.

With over 20 years experience in UK and International property tax, why not book a call with one of our team today to find out how much money you could potentially save. of

Book a call to see how we can help you.

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