CGT when you sell a second home
A second home — a holiday home, an inherited house you kept, or any residence that isn't your main home — is subject to Capital Gains Tax when you sell it at a profit. The first £3,000 of gains is tax-free; the rest is taxed at 18% within your basic-rate band and 24% above it.
What counts as your "second" home
You can only have one main residence for tax at a time. If you own two homes, you can formally elect which one is your main residence (which gets Private Residence Relief); the other is the second home that's taxed. Couples can only have one main residence between them.
The 60-day rule
Selling a UK residential property that isn't fully covered by relief means you must report and pay the CGT within 60 days of completion, using an HMRC "UK Property" account — separately from your normal tax return. Missing it brings penalties.
Example: £40,000 income + £60,000 gain
After the £3,000 allowance, £57,000 is taxable. With £40,000 of income, about £10,270 is taxed at 18% (£1,849) and £46,730 at 24% (£11,215) — roughly £13,064, due within 60 days.
Can I reduce the gain?
Yes — deduct buying and selling costs (legal fees, stamp duty paid, agent fees) and the cost of capital improvements. If the home was ever your main residence, part of the gain may qualify for relief.
What if I make a loss?
A loss on a second home can be offset against other capital gains in the same year or carried forward — report it to HMRC to preserve it.
More United Kingdom calculators
This calculator estimates CGT on a second home for 2026/27 based on published HMRC rates and is for general information only — not financial or tax advice. It excludes Private Residence Relief, lettings relief, losses and costs. UK residential property CGT must be reported within 60 days. See GOV.UK. Source: GOV.UK.