Find out how Capital Gains Tax (CGT) may apply to UK property sales—and what steps to consider when selling.
Capital Gains Tax (CGT) is a tax on the profit made from selling a property that isn’t your main home. If you’re selling a second home, a buy-to-let, or an inherited property, CGT might apply.
When CGT applies:
- Selling a second home
- Disposing of a rental property
- Transferring property through inheritance (if later sold)
Allowances and rates:
- Annual tax-free allowance (£6,000 as of 2025)
- CGT is charged at 18% or 28%, depending on your income
How to calculate CGT: Sale price – original purchase price – allowable costs (e.g. solicitor fees, home improvements) = taxable gain
Important: Always seek financial or legal advice to ensure your tax reporting is accurate and compliant.