Capital gains tax on house sale
26/09/2022
(Last Updated: 08/12/2023)
511
5 min read
Capital gains tax is declarable to HMRC for any property (house or flat) that you sell and isn't your Principle Private Residence (PPR). The capital gain needs to be declared and paid within 60 days of the sale of most UK properties using a Self Assessment: Capital gains summary SA108 Form.
To work out if you have a capital gains tax on your house sale, you deduct off the purchase prices, sale and purchase costs and then deduct the Capital gains tax allowance. Then, if there is a gain, you pay tax at the applicable rate.
You can declare if the second property was your main residence for a period of time.
What rate of capital gains tax is payable on sale of house?
The Capital Gains Tax on residential sale profit is as follows:
| Tax Band | Income Tax Band | Capital Gains Tax Rate (chargeable on profits) |
| Basic rate income tax payer | £0 to £50,270 | 18% |
| Higher rate income tax payer | Over £50,271 | 24% (post 6th March 2024 budget) |
Non-UK Residents pay a flat rate of 28% for any gain.
You have a tax free allowance of £3,000 for 2023-24.
Source: HMRC - Capital Gains Tax Rates
Does the capital gains tax account for if I lived in the property?
Where you have lived in the property as your PPR, then you don't pay capital gains tax for that period of time.
Need tax advice on your property transaction?
- Get up-to-date property tax advice on SDLT, CGT, IHT, Personal versus partnership versus company structures
- Free 15-minute initial consultation with a qualified accountant from our panel of tax advisors
- Ask your tax questions and get guidance on what you can do next
- If there is some further accountancy work required, then you'll be quoted for this as a separate piece of work with no obligation to purchase
Frequently Asked Questions
CALCULATE
PROVE
PRIMARYRESIDENCE
SHAREOFGAIN
SPOUSE
NONRESIDENT
AVOIDCGT
Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.
