Work out your gain

We’ll need to work out your gain to find out whether you need to pay Capital Gains Tax.

Your gain is usually the difference between what you paid for your property the amount you got when you sold (or ‘disposed of’) it.

Market value

In some situations we can use the market value of the property when working out your gain. We will do this this if:

• it was a gift (there are different rules if it was to your spouse, civil partner or charity
• you sold it for less than it was worth to help the buyer
• you inherited it (and do not know the inheritance tax value)
• you owned it before April 1982

Selling in special circumstances

There are special rules for calculating your gain if:

• you  live abroad
• you sell a lease or part of your
• your property is compulsory purchased

Jointly owned property

If you own property jointly with other people, work out the gain for the share that you own.

Deduct costs

You can deduct costs of buying, selling or improving your property from your gain. These include:

• estate agents’ and solicitors’ fees
• costs of improvement works, for example for an extension (normal maintenance costs, such as decorating, do not count. 

Reliefs

You may get tax relief if the property was:

• your home
• a business asset
• occupied by a dependent relative – find out more in the guidance on Private Resident Relief

Work out if you need to pay

When you’ve worked out your gain you need to work out if you need to report and pay Capital Gains Tax.

You may be able to work out how much tax to pay on your property.

You cannot use the calculator if you:

• sold business premises or land
• sold other chargeable assets in the tax year, for example shares
• reduced your share of a property that you still jointly own
• claim any reliefs other than Private Residence Relief or Letting Relief
• are a company, agent, trustee or personal representative

Selling overseas property

You pay Capital Gains Tax when you dispose of overseas property if you’re resident in the UK.

• There are special rules if you’re resident in the UK but your permanent home is abroad.
• You may also have to pay tax in the country you made the gain. If you’re taxed twice, you may be able to claim relief.
• If you’re non-resident
• Non-residents may have to pay UK tax on overseas property if they return to the UK within 5 years of leaving.