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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
• land
• inherited property

There are different rules if you:

• sell your home
• live abroad
• are a company registered abroad

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 60 days.

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 circumstances

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

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.

You may get tax relief if you sell property that you use for business. This may reduce or delay the amount of Capital Gains Tax you pay.

If the purpose of your business is to buy and sell property (you’re a property developer, for example) you do not pay Capital Gains Tax when you sell a property. Instead, you pay:

• Income Tax - if you’re a sole trader or partner
• Corporation Tax - if you’re a limited company

There are special rules for limited companies that dispose of a single residential property worth more than £2 million.

You pay Capital Gains Tax when you ‘dispose of’ overseas property if you’re resident in the UK.

You may also have to pay tax in the country you made the gain. If you’re taxed twice, you may be able to claim relief.

If you’re non-resident

Non-residents may have to pay UK tax on overseas property if they return to the UK within 5 years of leaving.