Question 1

How is the gain on a rental property worked out?

Accepted Answer

Start with your sale price and deduct your original purchase price, the costs of buying (such as legal fees and the SDLT you paid), the costs of selling (estate agent and legal fees) and the cost of any genuine capital improvements you made (not routine repairs or maintenance, which are usually deducted against rental income instead). What is left is your total gain before any reliefs or allowances.

Question 2

What is Private Residence Relief and could it apply to a rental property?

Accepted Answer

Private Residence Relief (PPR) reduces the taxable gain in proportion to the time a property was genuinely your main home, plus the final period of ownership (currently the last 9 months) regardless of whether you were living there. If you once lived in a property you later let out, you may be entitled to partial relief covering that period — this calculator applies a simple time-apportioned version of that relief based on the months you tell us you lived there versus the months you owned it overall.

Question 3

How do I know whether I pay 18% or 24%?

Accepted Answer

For residential property, the rate that applies depends on your total taxable income for the year, including the gain. Any part of your gain that sits within your remaining basic-rate band (after your other income) is taxed at 18%; anything above that is taxed at 24%. This calculator works out the split for you based on the other taxable income you enter.

Question 4

What is the 60-day reporting requirement?

Accepted Answer

If you sell or otherwise dispose of UK residential property and there is tax to pay, you must report the gain and pay the CGT due to HMRC within 60 days of completion, using HMRC's online "Report and pay Capital Gains Tax on UK property" service. This is separate from — and earlier than — your normal Self Assessment return, and the gain still needs to be included on your return later. Missing the 60-day deadline can mean automatic penalties and interest, even if you eventually report and pay through Self Assessment, so it is one of the most commonly missed obligations for landlords selling property.

Question 5

Can I do anything to reduce the CGT I owe?

Accepted Answer

Common approaches include making sure you have claimed every allowable cost and any Private Residence Relief you are entitled to, using your annual exempt amount (and your spouse or civil partner's, if you own jointly), and considering the timing of a sale relative to your other income in a given tax year. Everyone's situation is different and the rules around reliefs can be intricate, so it is well worth getting advice from a property tax specialist before completing a sale, not after.

Capital Gains Tax Calculator for Property

Your gain, step by step

Frequently asked questions

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Capital Gains Tax Calculator for Property

Your gain, step by step

Frequently asked questions

How is the gain on a rental property worked out?−

What is Private Residence Relief and could it apply to a rental property?+

How do I know whether I pay 18% or 24%?+

What is the 60-day reporting requirement?+

Can I do anything to reduce the CGT I owe?+

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