Capital Gains Tax on a home: relief and 60-day report

When you pay nothing: Private Residence Relief

GOV.UK says you do not pay CGT when you sell your home if:

• you have one home and have lived in it as your main home for all the time you have owned it;
• you have not let part of it out (having a lodger does not count as letting);
• you have not used part of it exclusively for business (occasional or temporary office use does not count);
• the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total;
• you did not buy it just to make a gain.

If all of these are true, “you will automatically get a tax relief called Private Residence Relief and will have no tax to pay.” If any is not true, you may owe some tax. Married couples and civil partners can count only one property as their main home at a time.

The last 9 months and periods away

Even when you do not meet every condition, some time counts as if you lived there. GOV.UK says:

• you always get relief for the last 9 months before you sold your home, whatever the number of homes you own, provided the property was your only or main residence at some point while you owned it;
• absences adding up to 3 years for any reason are covered;
• up to 4 years are covered if you had to live away from home in the UK for work;
• any period is covered if you were working outside the UK;
• you must have lived in the home before and afterwards, unless your work prevented you.

Older rules apply in particular cases: the last 36 months can qualify if you are disabled, in long-term residential care, or sold before 6 April 2014, and otherwise the last 18 months if you sold before 6 April 2020. For anything not covered here, such as letting a whole property, follow the GOV.UK guidance on letting out your home, which I did not read in full.

If tax is due: allowance and rates

• Annual Exempt Amount: £3,000 for individuals (£1,500 for trusts). The page does not state the tax year, so confirm the current figure at GOV.UK.
• Rates from 6 April 2026: higher or additional rate taxpayers pay 24% on gains. Basic rate taxpayers pay 18% up to the basic rate band, which GOV.UK gives as £37,700 for 2026-27, and 24% above it. Your taxable income and the allowance determine which applies.

Calculation, labelled as such: the gain is the sale price less the purchase price and allowable costs, less any relief, less the £3,000 allowance. The tax is that taxable gain multiplied by 18% or 24%. HMRC publishes a calculator for the exact steps.

The 60-day report

GOV.UK states: “You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.” For UK residential property sold on or after 27 October 2021, the page I read for non-UK residents gives 60 days from completion, and non-residents must report all UK property sales even if no tax is due. If you are a UK resident selling your own home with full relief, there is normally no tax to pay; ask HMRC or an accountant whether you need to report in your case. Late reporting or payment can bring interest and penalties.

You can report and pay using a Capital Gains Tax on UK property account.

Nations

The purchase taxes (Stamp Duty Land Tax, LBTT and LTT) do differ by nation; CGT as described does not appear to. See the stamp duty calculator for the purchase side.

Which professional to consult

An accountant or tax adviser can work out your gain, check whether Private Residence Relief applies in full, and file the report. A conveyancer can confirm the completion date, which starts the 60-day clock; see the conveyancer page.