You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home, for example:
- buy-to-let properties
- business premises
- inherited property
There are different rules if you:
You’ll need to work out your gain to find out whether you need to pay tax.
When you do not pay
You do not usually need to pay tax on gifts to your husband, wife, civil partner or a charity.
You may get tax relief if the property is a business asset.
If the property was occupied by a dependent relative you may not have to pay. Find out more in the guidance on Private Residence Relief.
If you need to pay
You must report and pay any Capital Gains Tax on most sales of UK property within 30 days.
Work out your gain
Your gain is usually the difference between what you paid for your property and the amount you got when you sold (or ‘disposed of’) it.
If your combined capital gains are over your allowance for the year you’ll have to report and pay Capital Gains Tax.
In some situations you should use the market value of the property when working out your gain. Do this if:
Selling in special circumstances
There are special rules for calculating your gain if:
Jointly owned property
If you own property jointly with other people, work out the gain for the share that you own.
You can deduct costs of buying, selling or improving your property from your gain. These include:
- estate agents’ and solicitors’ fees
- costs of improvement works, for example for an extension (normal maintenance costs, such as decorating, do not count)
You may get tax relief if the property was:
Work out if you need to pay
Once you know what your gain on the property is, you can calculate if you need to report and pay Capital Gains Tax.
You cannot use the calculator if you:
- sold land
- sold business premises
- sold other chargeable assets in the tax year, for example shares
- reduced your share of a property that you still jointly own
- claim any reliefs other than Private Residence Relief or Letting Relief
- are a company, agent, trustee or personal representative