Our helpful calculator can help you estimate your Capital Gains Tax when you sell a UK property.
Selling, gifting or transferring a buy-to-let property can create a Capital Gains Tax (CGT) liability. Use this calculator to get an initial estimate of the tax that may arise when you dispose of a residential investment property.
Enter the purchase price, sale price and eligible costs to see an indicative gain. Your final position can be affected by your income, ownership share, qualifying costs, available losses, periods of main-residence occupation and the date of disposal.
Selling a rental property or planning a transfer?
Get a clear CGT calculation before you commit. Our landlord tax specialists can review your gain, allowable costs and reporting position.
Capital Gains Tax on Rental Property: What Can You Deduct?
Selling a buy-to-let property? Find out which purchase, sale and improvement costs may reduce your Capital Gains Tax bill, and which day-to-day costs cannot be claimed against your gain.
Capital Gains Tax on Property: Your Top Questions Answered
From allowable costs and joint ownership to the 60-day reporting deadline, Capital Gains Tax can be confusing. See answers to the questions landlords most commonly ask before selling.
Selling a Buy-to-Let: Personal or Limited Company?
The tax outcome can differ greatly depending on whether your property is owned personally or through a company. Consider income tax, Corporation Tax, CGT and how you plan to use the sale proceeds.
Jointly Owned Property: How Is Capital Gains Tax Split?
Where a rental property is owned with a spouse or partner, CGT is generally based on each person’s beneficial share. Getting the ownership split right can make a significant difference to the tax due.
A Family Investment Company may help landlords plan how property wealth is passed to future generations while retaining an appropriate level of control. Find out how this structure can work in practice.
HMRC's Let Property Campaign may offer a route to rectify tax affairs if you have undeclared rental income from previous years. Learn what to consider before making a disclosure.
The following calculator and commentary are provided solely for informational purposes. Please note that this information may not be current or complete and that it may only apply to certain types of residential properties in the UK. It does not constitute any form of advice.
UK Property Tax
Capital Gains Tax Calculator
Estimate your Capital Gains Tax when you sell a UK property
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Include stamp duty, legal and estate agent fees, and capital improvements such as an extension. Do not include mortgage interest, running costs or general repairs.
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This is your sale price minus your purchase price minus your costs above. It is before Private Residence Relief, the Annual Exempt Amount, or any other allowance.
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Co-owner holds the remaining 50%.
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£
This is your income after the Personal Allowance, not your total income. It decides how much of your gain is taxed at 18% rather than 24%.
months
months
Total Capital Gains Tax due
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60-day reporting deadline: if any Capital Gains Tax is due on a UK residential property, you must report the sale and pay the tax owed to HMRC within 60 days of completion, using HMRC's Capital Gains Tax on UK property service. This applies even if you also complete a Self Assessment tax return. Missing the deadline triggers an initial £100 penalty, with further daily and 6-month penalties plus interest if the delay continues. Non-UK residents must report every disposal within 60 days, even where no tax is due.
Private Residence Relief (simplified): this estimate assumes relief for the months you lived in the property as your main home, plus a further 9 months at the end of ownership (36 months if you were disabled or had moved into care). It does not allow for other periods of deemed occupation, such as time working away, letting relief, or business use of part of the property. If any of these apply, the relief due, and the tax owed, may differ from this estimate.
Please note: this calculator is designed for individuals selling a UK residential property such as a buy-to-let or second home. It does not cover limited companies, trusts, personal representatives of an estate, non-UK residents, or mixed business and residential use. Joint ownership figures assume the entered incomes belong to each named owner in their stated share. For joint owners, HMRC looks at the actual beneficial ownership share, not just what is on the title deeds, and any change to that split normally needs to be agreed and evidenced before the sale. Capital Gains Tax rates and allowances are the same across the whole of the UK, including Scotland and Wales, even though income tax bands differ between nations. This figure is an estimate only; for a full breakdown of how it was calculated, please speak to your adviser.
60-day reporting deadline:
If any Capital Gains Tax is due on a UK residential property, you must report the sale and pay the tax owed to HMRC within 60 days of completion, using HMRC’s Capital Gains Tax on UK property service. This applies even if you also complete a Self Assessment tax return. Missing the deadline triggers an initial £100 penalty, with further daily and 6 month penalties plus interest if the delay continues. Non-UK residents must report every disposal within 60 days, even where no tax is due.
Please note:
This calculator is designed for individuals selling a UK residential property such as a buy-to-let property. It does not cover limited companies, trusts, personal representatives or UK assets, non-UK residents, or mixed business and residential use. Joint ownership figures assume the interest/disposal being to each named person in their capital shares. For joint owners, HMRC looks at the actual beneficial ownership share, not just what is on the title deeds, and any change to that split normally needs to be agreed and evidenced before the sale. Capital Gains Tax rates and allowances are the same across the whole of the UK, including Scotland and Wales, even though income tax bands differ between countries. This figure is an estimate only; for a full breakdown of how it was calculated, please speak to your adviser.
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Why are interest-only mortgages a common choice for buy-to-let properties?
To finance their investments, landlords typically choose interest-only buy-to-let mortgages because they are less expensive and yield higher net monthly rental cashflow. With fixed-rate options, landlords ensure monthly costs remain stable for long periods.
Additionally, you can consolidate multiple rental debts into one overall package. Our specialist accountants are here to analyze your current situation and optimize your mortgage structures.
What happens at the end of an interest-only buy-to-let mortgage?
The original amount borrowed by the borrower must be repaid in full when the interest-only mortgage expires. In this type of mortgage, interest is paid monthly and the total loan repayment is deferred until the end. In most cases, a lender will contact you at least a year prior to the end of your term to remind you of the deadline, then again at 6 months, and then once more as the closing date approaches. The lender can then issue you a redemption statement, which confirms the specific amount to be repaid.
How much is the deposit for a buy-to-let interest-only mortgage?
This can vary from lender to lender. Most lenders now require some form of deposit but the way they calculate how much they will lend is a factor of the rental income for the property and interest rates. Most BTL lenders operate on an interest cover formula. Typically they will require the rental income to cover anything from 125% to 140% of the interest payments.
If you have further questions feel free to talk to us about your landlord accountancy queries by getting in touch at 0800 907 8633, via tax@fixedfeetr.com or via our online contact form to speak to one of our specialist tax advisors.
UKLandlordTax.co.uk is the trading name of Thandi Nicholls Ltd Accountants Registered Office: Creative Industries Centre, Glaisher Drive, Wolverhampton WV10 9TG.
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