Capital Gain Tax

Capital gains tax is payable on the sale of second homes and buy-to-let property. Find out how much CGT you'll pay.

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Do I pay capital gains tax on property?

If you sell a property in the UK, You may need to pay capital gains tax (CGT) on your profits if you sell your property in the UK. You generally won't need to pay the tax when selling your main home.

However, you will  usually face a CGT bill when selling second homes or buy-to-let properties. You may also need to pay CGT if your home is partly used as a business premises, or you lease out part of your property. 

CGT rates on property

In the UK, you pay higher rates of CGT on property than other assets. Basic-rate taxpayers pay 18% on gains they make when selling property, while higher and additional-rate taxpayers pay 28%. With other assets, the basic-rate of CGT is 10%, and the higher-rate is 20%. 

Bear in mind that any capital gains will be included when working out your tax status for the year, and may push you into a higher bracket.

All taxpayers have an annual CGT allowance, meaning they can earn a certain amount tax-free.


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