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.
Market value
In some situations you should use the market value of the property when working out your gain. Do this if:
- it was a gift (there are different rules if it was to your spouse, civil partner or a charity)
- you sold it for less than it was worth to help the buyer
- you inherited it (and do not know the Inheritance Tax value)
- you owned it before April 1982
Selling in special circ*mstances
There are special rules for calculating your gain if:
- you live abroad
- you sell a lease or part of your land
- your property is compulsorily purchased
- you are selling property from the estate of someone who has died
Jointly owned property
If you own property jointly with other people, work out the gain for the share that you own.
Deduct costs
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)
Reliefs
You may get tax relief if the property was:
- your home
- a business asset
- occupied by a dependent relative - find out more in the guidance on Private Residence Relief
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
Calculate Capital Gains Tax on property
If you have Capital Gains Tax to pay
You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.
Reporting a loss
The rules are different if you need to report a loss.
