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How CGT Works on an Inherited Property
Inheriting a property doesn't itself create a Capital Gains Tax bill — Inheritance Tax is the tax that applies to the estate at the point of death, not CGT. Your CGT position only starts from the date you inherit, using the property's probate value (its market value at the date of death, as declared for Inheritance Tax) as your acquisition cost.
Selling shortly after inheriting
If you sell soon after probate completes, the gain is often small or nil, since the sale price and probate value tend to be close. A meaningful gain typically arises when the property is held for a while before sale, or when the probate valuation was conservative relative to what the market later paid.
Multiple beneficiaries
If a property is inherited jointly, each beneficiary has their own share of the gain and their own £3,000 annual exempt amount to set against it — worth modelling per person rather than treating the estate as a single taxpayer.
60-day reporting still applies
If the property doesn't qualify for full Private Residence Relief when sold (e.g. it wasn't your own main home), the usual 60-day UK property CGT reporting deadline applies from the completion date, same as any other property disposal.
How this calculator works — Formulas & Method
Source: gov.uk/capital-gains-tax/inherited-property, gov.uk/valuing-estate-of-someone-who-died · Deterministic calculation — no AI, no arbitrary estimation
Constants used
| Constant | Value | Source |
|---|---|---|
| Annual exempt amount | £3,000 | gov.uk/capital-gains-tax/rates, 2026/27 |
| Basic rate band upper limit | £50,270 taxable income | gov.uk Income Tax rates 2026/27 |
| CGT basic / higher rate | 18% / 24% | gov.uk/capital-gains-tax/rates |
| Acquisition cost used | Probate value at date of death | gov.uk/capital-gains-tax/inherited-property |
Formulas
gain = max(0, sale_price − probate_value_at_death)
taxable_gain = max(0, gain − £3,000)
— Rate band —
basic_band_remaining = max(0, £50,270 − other_taxable_income)
cgt = min(taxable_gain, basic_band_remaining) × 18% + rest × 24%
Deterministic calculation for one beneficiary's full share of the gain. Joint inheritances should be modelled per beneficiary; always confirm your own position with HMRC or a qualified adviser.
Get It Filed Correctly, Not Just Estimated
This calculator gives an estimate — actually reporting and paying it correctly is a separate step with its own deadline and paperwork.
- Selling an inherited property: your acquisition cost is the probate value at the date of death, not what the deceased originally paid — get that figure confirmed from the estate's probate valuation before calculating your gain.
- Multiple disposals in one tax year: ordering and timing disposals across the 5/6 April boundary can materially change what you owe.
- Inherited or gifted assets: your acquisition cost for CGT purposes isn't always what you think — get the base cost confirmed.
- Business Asset Disposal Relief: can cut your rate to 18% on qualifying gains, but eligibility rules are strict.
A fixed-fee online accountant can handle the return and your wider Self Assessment together.
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Methodology & Sources
Figures are public HMRC rates. For your exact position, use gov.uk/capital-gains-tax.
Not Tax or Legal Advice
Information only. Consult the Chartered Institute of Taxation or an adviser via the FCA Register.
Open Source
Formulas are public. Inspect on GitHub.