Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer When you sell a residential property that is not your main home, you pay capital gains tax at 18% or 24% on the gain above the £3,000 annual exempt amount. You must report and pay within 60 days of completion using a UK Property Account, separately from your tax return.

How to work out the gain

  1. Take the sale price. What the property sold for.
  2. Deduct the purchase price and costs. What you paid, plus legal fees, stamp duty and estate agent fees.
  3. Deduct improvements. Capital improvements such as an extension, but not repairs.
  4. Apply reliefs and the allowance. Private Residence Relief for periods it was your main home, then the £3,000 annual exempt amount.
  5. Apply the rate. 18% within your basic rate band, 24% above it.

The 60 day deadline

This is where people slip up. For UK residential property, you must report the gain and pay the tax within 60 days of completion, through a UK Property Account. Missing it brings penalties and interest, even though the gain also appears later on your Self Assessment return.

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The 60 day clock is tight and the reliefs are easy to miscalculate. TaxTune works out the gain, claims Private Residence Relief correctly, and reports and pays within the deadline.

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Frequently asked questions

What is the capital gains tax rate on property?

For residential property that is not your main home, the rate is 18% within your basic rate band and 24% above it, on the gain over the £3,000 annual exempt amount.

What is the 60 day rule?

You must report and pay capital gains tax on UK residential property within 60 days of completion, through a UK Property Account, separately from your Self Assessment return.

Do I pay capital gains tax on my main home?

Usually not, because Private Residence Relief normally removes the gain on your main home. Relief can be reduced if you let the property or used part exclusively for business.

What costs can I deduct?

The purchase price, buying and selling costs such as legal fees, stamp duty and agent fees, and capital improvements such as an extension. Ordinary repairs are not deductible.

What if I miss the 60 day deadline?

HMRC charges penalties and interest for a late property return and payment, even though the gain also appears on your later Self Assessment return.