Breakdown
How it works
Gain = proceeds − purchase price − allowable costs (stamp duty, legal and agent fees, capital improvements, not maintenance). Deduct the annual exempt amount, then stack the taxable gain on top of your income: the part within the basic-rate band (up to £50,270 total) is taxed at 18%, the rest at 24%. Your main home is normally exempt under Private Residence Relief.
Formula
Worked example
Buy-to-let bought £200,000, sold £300,000, costs £8,000, income £40,000: gain £92,000 − £3,000 = £89,000; £10,270 at 18% + £78,730 at 24% = £20,744.
Frequently asked questions
When do I report and pay CGT on property?
Within 60 days of completion via HMRC's online property account, with a payment on account. Other gains go on Self Assessment by 31 January after the tax year.
Do UK expats pay CGT on UK property?
Yes — non-residents pay CGT on UK residential property gains since April 2015 (rebasing to the 2015 value is allowed) and on all UK land and property since 2019. Shares are generally outside scope while non-resident, unless you return within 5 years.
Can I transfer assets to my spouse to use two allowances?
Yes. Transfers between spouses are no gain/no loss, so each can use their £3,000 allowance and basic-rate band on a sale.
What is Private Residence Relief?
Gains for the period you lived in a property as your main home (plus the final 9 months) are exempt. For a former home later let out, the exempt fraction is time lived there ÷ total ownership.
Can I offset losses?
Yes, current-year losses must be used; losses carried forward are used only down to the allowance. Report losses to HMRC within 4 years to bank them.