What capital gains tax rate applies when selling a second home?
Capital gains tax on a second home is typically charged at:
- 18 percent for basic rate taxpayers
- 28 percent for higher and additional rate taxpayers
The tax is calculated on the profit you make, not the total sale price. This means the difference between what you paid for the property and what you sell it for, after deducting allowable costs.
You may be able to reduce your taxable gain by deducting:
- Legal and conveyancing fees
- Stamp duty paid when you purchased the property
- Estate agent fees
- Costs of major improvements, such as extensions or renovations
Each individual also has an annual capital gains tax allowance, which can reduce the amount you pay if your gains fall within that threshold.
In most cases, capital gains tax on UK property must be reported and paid within 60 days of completion. Missing this deadline can result in penalties and interest charges.
It is also worth noting that your tax position may vary depending on factors such as ownership structure, whether the property was ever your main residence, and your overall income.
Understanding your potential tax liability early can help you plan your sale more effectively and avoid unexpected costs.
Sell House Fast provides a quick and certain route to selling, allowing you to move forward without delays. To understand what you could receive from your sale, you can request an online cash offer to see what we’d offer for your property.
