CalculatorCentral.uk

Capital Gains Tax On Inherited Property Calculator UK

Enter your values below to get the result first, then scroll for the full explanation and guidance.

Step 1 • Add values

Use the calculator

Enter your values below to generate an instant result. You can update the inputs at any time to compare different scenarios.

Example: GBP 425,000 proceeds less GBP 260,000 date-of-death value, GBP 15,000 improvements and GBP 8,000 selling costs gives GBP 142,000 gain before exemption.

Results refresh instantly as values change.

Estimated CGT on inherited residential property

£32,298.002026/27 beneficiary sale illustration

Estimated CGT on inherited residential property: £32,298.00 (2026/27 beneficiary sale illustration)

The date-of-death value is the acquisition basis. Allowable improvement and selling costs reduce the gain before the annual exemption and residential CGT rates are applied.

Gain since inheritance

The date-of-death value is the acquisition basis. Allowable improvement and selling costs reduce the gain before the annual exemption and residential CGT rates are applied.

Result snapshot

A quick visual read of the values behind this result.

Gain before exemption£142,000.00
Annual exemption used£3,000.00
Taxable gain£139,000.00
Gain taxed at 18%£17,700.00
Gain taxed at 24%£121,300.00

Recommended next checks

  • →Confirm the date-of-death valuation and allowable costs. Check whether reliefs, other gains or losses change your position before reporting.
Gain before exemption
£142,000.00
Annual exemption used
£3,000.00
Taxable gain
£139,000.00
Gain taxed at 18%
£17,700.00
Gain taxed at 24%
£121,300.00

Only for an individual UK-resident beneficiary selling their own share in 2026/27, with no other gains, losses or reliefs and the full £3,000 annual exemption available. Not for an estate sale or an exempt main residence. UK residential property CGT may need reporting within 60 days.

Try different values to compare results.

If you inherited a residential property and later sold your share, enter its market value at the date of death, your sale proceeds and allowable costs. Inheritance itself does not create a CGT bill; this estimates the gain on your later 2026/27 sale.

Restricted scope stated

Applicable period shown

Excluded claim or payroll factors disclosed

Table of Contents

5

About Capital Gains Tax On Inherited Property Calculator UK

Capital Gains Tax On Inherited Property Calculator UK helps you work through the main numbers for this topic quickly with a simple input flow and an instant result.

Use the calculator result as a practical starting point, then review the explanation and assumptions on the page if you want more context.

CGT after inheriting property

A beneficiary normally takes the property at its date-of-death market value, not the deceased owner's purchase price. Deduct allowable capital improvements and selling costs from the later sale proceeds, then use the available annual exemption. For a simple individual residential-property sale in 2026/27, taxable gain within the unused GBP 37,700 basic-rate band is charged at 18% and the rest at 24%. UK residential property CGT may have a 60-day reporting deadline.

Formula explained

CGT on inherited residential property

Estimate 2026/27 CGT when a UK-resident individual beneficiary sells inherited UK residential property, using its date-of-death market value as the acquisition basis.

Formula

Gain = sale proceeds - date-of-death market value - allowable costs; taxable gain = max(0, gain - available GBP 3,000 exemption); CGT = 18% within unused basic band + 24% above it

How the result is built

1Enter the market value of your share at the date of death, not the deceased owner's purchase price.
2Subtract allowable capital improvements and selling costs from your sale proceeds.
3Apply the available annual exemption and unused basic-rate band; other gains, losses and reliefs are excluded.

Example

Example: GBP 425,000 proceeds less GBP 260,000 date-of-death value, GBP 15,000 improvements and GBP 8,000 selling costs gives GBP 142,000 gain before exemption.

Assumptions

  • UK-resident individual beneficiary sells their own UK residential-property share in the 2026/27 tax year; the estate or personal representatives are not the seller.
  • The date-of-death value is established, all entered improvement and selling costs are allowable, and the full GBP 3,000 annual exemption is available.
  • No other gains, losses, Private Residence Relief, letting relief, trust interests or non-resident rules apply; this estimate is not Inheritance Tax.

Source basis

  • HMRC: CG31140 date-of-death acquisition value; 2026/27 Capital Gains Tax rates and allowances

Trust and notes

Assumptions and important notes

This calculator is designed to give a fast estimate using the method shown on the page. Results are most useful when your inputs are accurate and the tool matches your situation.

Use the result as guidance rather than a final diagnosis or professional decision. If the result could affect health, legal, financial, or compliance decisions, verify it with a qualified source where appropriate.

  • UK-resident individual beneficiary sells their own UK residential-property share in the 2026/27 tax year; the estate or personal representatives are not the seller.
  • The date-of-death value is established, all entered improvement and selling costs are allowable, and the full GBP 3,000 annual exemption is available.
  • No other gains, losses, Private Residence Relief, letting relief, trust interests or non-resident rules apply; this estimate is not Inheritance Tax.

Method

CGT on inherited residential property

Last reviewed

October 13, 2026