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Capital Gains Tax on UK Property Sale 2024/25

Calculate the capital gains tax on selling a UK residential property. Includes PPR relief for your main home, the £3,000 annual allowance, and the new 18%/24% rates introduced in the October 2024 Budget.

CGT on UK Property Sale

Capital improvements only, not repairs/maintenance

How CGT on Property Works (2024/25)

Capital Gains Tax applies when you sell a property that is not (or has not always been) your main home, and you make a profit. The key steps are:

  1. Calculate your gross gain: sale price minus purchase price and allowable costs
  2. Deduct any PPR relief for periods the property was your main residence
  3. Deduct the annual exempt amount of £3,000
  4. Apply the CGT rate: 18% (basic rate) or 24% (higher rate)
  5. Report and pay within 60 days of completionvia HMRC's property disposal service

Allowable Deductions

DeductibleNot Deductible
SDLT / stamp duty on purchaseMortgage interest
Legal fees (purchase & sale)Repairs and maintenance
Survey and valuation feesInsurance premiums
Estate agent fees on saleFurnishings and fittings
Capital improvements (extensions, conversions)Decoration/redecoration

The 60-Day Reporting Rule

Since April 2020, UK residents must report and pay CGT on residential property gains within 60 days of completion (previously 30 days). Failure to report attracts automatic penalties starting at £100, plus interest on unpaid tax.

Non-Resident Landlords

Non-UK residents selling UK residential property must report under the Non-Resident CGT (NRCGT) regime, also within 60 days. Different rates and rules may apply — consult a tax adviser.