2. Work out your gain

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. Use the market value instead if:

There are special rules for calculating your gain if you sell a lease or part of your land, or your home is compulsorily purchased.

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

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, eg for an extension (normal maintenance costs don’t count, eg for decorating)


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.

Reporting a loss

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