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:

Profits from capital gains
£
Outside of capital gains
Annual income
£
Outside of capital gains
Select tax year

Your total annual income: £69,000.00

£0
£69,000.00

Your capital gains income: £20,000.00

Tax free
Taxed at 10%
£100.00
Taxed at 20%
£1,400.00
Tax free (allowance)
£12,000.00
Taxed at 10%
£1,000.00
Taxed at 20%
£7,000.00
Total capital gains tax
£1,500.00

How your capital gains tax is calculated

Your total capital gains tax (CGT) owed depends on two main components:

  1. How much you earn in total
  2. 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 £20,000.00 and your total annual earnings were £69,000.00:

Capital gains tax (CGT) breakdown

You pay no CGT on the first £12,000.00 that you make

You pay £100.00 at 10% tax rate for the next £1,000.00 of your capital gains

You pay £1,400.00 at 20% tax rate on the remaining £7,000.00 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 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?

Of course.

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.

Need help with your tax return?

Get your self assessment prepared for you online by certified accountants for £119

Online self assessment preparation assisted by professional accountants

How TaxScouts works

Simple online tax assessment

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

Chat to human advisors

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

We’ll sort your documents online

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

Everything gets prepared for you

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

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We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

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UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

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TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.





Let's start by creating your account

What happens next

  • We'll ask you a couple of short questions
  • Then we'll tell you what documents we need
  • Finally one of our qualified accountants will file your tax return