Answers · UK 2025/26
How much capital gains tax will I pay when I sell my second home?
CGT on a second home is 18% within your basic-rate band and 24% above it, after deducting the GBP 3,000 annual exempt amount. On a GBP 50,000 gain, a higher-rate taxpayer pays 24% on GBP 47,000, which is GBP 11,280.
Full answer
When you sell a second home or buy-to-let in 2026/27, the gain is taxed at 18% to the extent it falls within your remaining basic-rate band and 24% above it. Everyone has an annual exempt amount of GBP 3,000, deducted before tax. The gain is the sale price minus the original cost, buying and selling costs, and qualifying improvements. Worked example: you bought a second home for GBP 200,000 and sell for GBP 253,000, with GBP 3,000 of allowable costs, giving a gain of GBP 50,000. Deduct the GBP 3,000 exemption to leave GBP 47,000 taxable. A higher-rate taxpayer pays 24% on the full GBP 47,000, which is GBP 11,280. A basic-rate taxpayer would pay 18% on the part that fits in their remaining basic-rate band (up to the GBP 50,270 higher-rate threshold) and 24% on the rest. Residential property gains must be reported and the tax paid within 60 days of completion via an HMRC CGT on UK property account. Private Residence Relief may reduce the bill if the home was ever your main residence. Use the capital-gains-tax calculator to estimate your liability, then confirm reliefs and the 60-day deadline on gov.uk.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.