United Kingdom · Capital gains tax on property
Capital Gains Tax on a Second Home (UK) Calculator
Capital gains tax on a UK second home in 2026/27 is 18 per cent within your remaining basic-rate band and 24 per cent above it, on the whole gain after the £3,000 annual exempt amount, because a property that was never your main home gets no Private Residence Relief. A higher-rate taxpayer with a £100,000 gain pays about £23,280.
A holiday home or additional property that has never been your main residence gets no Private Residence Relief, so the whole gain is chargeable.
About 23.3% of your £100,000 gain. You keep roughly £76,720.
How we got this
| Sale price | £300,000 |
| Less purchase price | −£200,000 |
| Less costs and improvements | −£0 |
| Gain | £100,000 |
| No gain / no loss transfer | −£100,000 |
| Less Private Residence Relief | −£0 |
| Less annual exempt amount | −£3,000 |
| Taxable gain | £97,000 |
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Higher-rate band | £97,000 | 24% | £23,280 |
| Estimated CGT | £23,280 |
A UK residential sale with tax to pay must be reported and paid within 60 days of completion. For a sale completing today, that window runs to about 5 November 2026.
On these figures there is no capital gains tax to pay, so a UK resident does not need to file the 60-day property return. A non-resident must report a disposal of UK property whether or not any tax is due.
This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HMRC or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.
Your figures are worked out in your browser. They are not sent to us or stored.
How much capital gains tax do I pay on a second home?
A second home is taxed on the full gain because Private Residence Relief only covers a property that has been your only or main home. The gain is the sale price minus the purchase price, buying and selling costs and any capital improvements. After the £3,000 annual exempt amount, the balance is taxed at 18 per cent within your remaining basic-rate band and 24 per cent above it. A jointly owned second home uses two allowances.
What can you deduct from the gain?
The purchase price, the stamp duty and legal fees paid on the way in, the agent and legal fees paid on the way out, and any capital improvement that is still reflected in the property. A new extension counts. A new boiler replacing an old one does not.
Mortgage interest, insurance, council tax, letting agent fees and ordinary repairs are all revenue costs, and none of them reduce a capital gain.
What does the tax actually come to?
The table below is produced by the same engine as the calculator above, at four gain sizes and the two income positions most people are in.
| Gain | Basic-rate seller | Higher-rate seller | Higher-rate couple, jointly owned |
|---|---|---|---|
| £20,000 | £3,618 | £4,080 | £3,360 |
| £50,000 | £10,818 | £11,280 | £10,560 |
| £100,000 | £22,818 | £23,280 | £22,560 |
| £200,000 | £46,818 | £47,280 | £46,560 |
Estimates for 2026/27, after the £3,000 annual exempt amount. A basic-rate seller here has £30,000 of other income, a higher-rate seller £60,000.
When do you have to report and pay?
Within 60 days of completion, through an HMRC Capital Gains Tax on UK property account. The deadline runs from completion, not from exchange and not from the end of the tax year, and the tax is payable by the same date.
A return is still needed even when the estimate here comes to nothing, in some situations. A UK resident with no tax to pay generally does not have to file, but a non-resident must report every disposal of UK property whether or not any tax is due.
Missing the deadline brings an automatic penalty, and interest runs on the unpaid tax from the due date.
What do people most often get wrong?
- Deducting mortgage interest, ordinary repairs or redecoration. None of these reduce a capital gain.
- Forgetting the second allowance on a jointly owned property, which is worth up to £3,000 of extra exemption.
- Treating the whole gain as taxed at 24 per cent. The part that falls within the remaining basic-rate band is taxed at 18 per cent.
Common questions
How much is capital gains tax on a second home?
The gain above the £3,000 allowance is taxed at 18 per cent within your remaining basic-rate band and 24 per cent above it. On a £100,000 gain for a higher-rate taxpayer the estimate is about £23,280.
Can a couple use two allowances on a second home?
Yes. If the property is owned jointly, each owner has their own £3,000 annual exempt amount, so £6,000 in total.
What is the capital gains tax allowance for 2026 to 2027?
The annual exempt amount is £3,000 per person, or £6,000 for a couple who own the property jointly.
When must UK property capital gains tax be reported?
Within 60 days of completion, through an HMRC Capital Gains Tax on UK property account.