Tax when you sell property

2. Work out your gain

You’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 and the amount you got when you sold (or ‘disposed of’) it.

Market value

In some situations you should use the market value of the property when working out your gain. Do this if:

Selling in special circumstances

There are special rules for calculating your gain if:

If you’re a non-resident selling UK residential property you only pay tax on the gain you’ve made since 5 April.

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, don’t count)

Reliefs

You may get tax relief if the property was:

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 use the Capital Gains Tax calculator to work out how much tax to pay on your property. You can’t use it 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

Reporting a loss

The rules are different if you need to report a loss.