How much is the Capital Gains Tax on property?
If you sell a property for a profit, then you will have to pay Capital Gains Tax (CGT).
How much you actually pay then depends on two things:
- what your total taxable income for the year is
- how big was your profit from selling the property
Usually, Capital Gains Tax is 10% or 20%, but for properties it’s 18% or 28% of the profit instead.
How much will I pay?
You can simply use this Capital Gains Tax calculator to see what your tax bill could be:
First £12,000 are tax-free.
£1,000 taxed at 10%: £100
£7,000 taxed at 20%: £1,400
How your capital gains tax is calculated
Your total capital gains tax (CGT) owed depends on two main components:
- How much you earn in total
- What type of assets you sell
Your overall earnings determine how much of your capital gains are taxed at 10% or 20%.
Our capital gains tax rates guide explains this in more detail.
In your case where capital gains from shares were £20,000 and your total annual earnings were £69,000:
Capital gains tax (CGT) breakdown
You pay no CGT on the first £12,000 that you make
You pay £100 at 10% tax rate for the next £1,000 of your capital gains
You pay £1,400 at 20% tax rate on the remaining £7,000 of your capital gains
Are there any tax-free allowances or tax reliefs?
You don’t have to pay Capital Gains Tax on property when:
- you’re selling your main home
- if your profit is less than the £12,000 tax-free Capital Gains allowance
- if you’ve made a capital loss on a buy-to-let property sold in a previous year
If you have let out either part or all of your home for a while, you can also apply for letting relief.
This will be the lowest of:
- the gain you receive from the letting proportion of the home
- or the amount of private residence relief you can claim
- or £40,000.
What costs can I claim?
- the price you bought the property for (of course)
- stamp duty
- any legal costs (solicitors’ or agents’ fees)
- any improvements, refurbishing, extensions, etc.
- but not maintenance or mortgage payments or interest.
What if it’s a jointly owned property?
Simple: if you own the property jointly, you each benefit from the £12,000 Capital Gains allowance.
What if I have more than one home?
You can nominate which one is your home. It doesn’t have to be where you live most of the time.
Married couples and civil partners can have only one main home between them.
Do I pay CGT if I give a property as a gift?
If it has increased in value since you bought it, yes – read more here.
Can TaxScouts help?
We can simply calculate and file your property Capital Gains Tax as part of your Self Assessment tax return.
All done online and for a flat £119 – we won’t charge you anything extra for it.