Chargeable gain: £84,000 (sale − purchase − costs − improvements).
Capital Gains Tax £18,524. Gain after tax £65,476.
After the £3,000 allowance, £81,000 is taxable. £15,270 falls in your remaining basic-rate band (18%) and £65,730 above it (24%), giving an estimated £18,523.80 of Capital Gains Tax.
How your Capital Gains Tax is worked out
| Total gain | £84,000.00 |
| Less annual exempt amount | −£3,000.00 |
| Taxable gain | £81,000.00 |
| Basic rate (18%) on £15,270 | £2,748.60 |
| Higher rate (24%) on £65,730 | £15,775.20 |
| Capital Gains Tax | −£18,523.80 |
| Gain after tax | £65,476.20 |
The annual exempt amount is £3,000 for 2026/27. Gains are taxed at 18% to the extent they fit in your remaining basic-rate band and 24% above it — the same rates for shares and residential property. Your CGT is paid separately from income tax (property gains within 60 days of completion).
Example gains (your income & asset)
CGT at £35,000 income. Tap to load a gain.
Frequently asked questions
Do I pay Capital Gains Tax when I sell a buy-to-let?
Yes. A rental or second property is a chargeable asset, so selling it for a gain is subject to Capital Gains Tax. For 2026/27 the gain above the £3,000 allowance is taxed at 18% within your remaining basic-rate band and 24% above it — the same residential property rates as before.
How is the gain on a rental property calculated?
Take the sale price, subtract what you paid for it, the buying and selling costs (legal fees, estate agent fees, and the stamp duty you paid on purchase) and the cost of any capital improvements. Switch this calculator to “Sale price & costs” to work it out from those figures.
When do I report and pay CGT on property?
You must report and pay Capital Gains Tax on UK residential property within 60 days of completion using HMRC’s online service. You then also include it on your Self Assessment return. Missing the 60-day deadline can mean penalties and interest.
What if I used to live in the property?
If the property was your only or main home for part of the time you owned it, Private Residence Relief can reduce the gain for those years (plus the final 9 months). This calculator does not apply that relief, so if you lived there, your actual taxable gain may be lower.
Can I reduce the Capital Gains Tax on my buy-to-let?
Make sure you deduct every allowable cost (purchase price, buying/selling fees, stamp duty paid, and capital improvements), use any capital losses from other assets, and use both partners’ allowances and basic-rate bands if you own jointly. Spouses can transfer assets between them with no CGT to make use of both sets of allowances.
Related calculators & guides
Sources — official UK figures
A simplified estimate using 2026/27 Capital Gains Tax rates and the £3,000 annual exempt amount. It assumes UK residence and standard rates; it does not cover Business Asset Disposal Relief (a reduced rate up to a £1m lifetime limit), Investors' Relief, gifts, trusts, non-residents, or the Private Residence Relief that usually makes your main home exempt. Report and pay CGT through Self Assessment, or within 60 days for UK residential property. For an exact figure, speak to an accountant.