Last updated: 14 October 2026
How does Capital Gains Tax work when you sell a jointly owned property?
Each owner is taxed on their own share of the gain. If you and a partner, friend or relative sell a property you own together, you split the gain according to your ownership shares, and each of you deducts your own £3,000 annual exempt amount and pays CGT at your own rate. For residential property, that’s 18% on gains within your basic rate band and 24% above it. Each owner must report and pay within 60 days of completion.
Working out each share
| Step | Amount |
| Sale price | £400,000 |
| Less purchase price and buying costs | £260,000 |
| Less selling costs and improvements | £20,000 |
| Total gain | £120,000 |
| Each owner’s 50% share | £60,000 |
| Less annual exempt amount | £3,000 |
| Taxable gain per owner | £57,000 |
If one owner is a basic rate taxpayer with £20,000 of basic rate band left, they pay 18% on £20,000 and 24% on £37,000: £3,600 plus £8,880, which is £12,480. A higher-rate co-owner pays 24% on £57,000: £13,680.
Joint tenants or tenants in common
As joint tenants, you’re treated as owning equal shares. As tenants in common, your shares can be unequal, such as 70:30, and the gain is split that way. What counts is your beneficial ownership, usually shown by a declaration of trust. For married couples and civil partners, rental income is split 50:50 unless you’ve made a Form 17 declaration, but for CGT the actual beneficial shares apply.
Main residence relief
Private residence relief is personal. If the property was your main home for all or part of your ownership, you can claim relief on your share, even if your co-owner can’t. The final 9 months of ownership qualify for relief if the home was your main residence at some point.
Transferring shares before a sale
Spouses and civil partners can transfer shares to each other with no CGT. Moving a share to the partner with a lower tax rate before a sale, as a genuine outright gift, can reduce the total tax. Transfers to anyone else are disposals at market value.
The 60-day return
Each owner must file their own UK property return and pay their CGT within 60 days of completion. Late returns attract penalties and interest, and the gain must also appear on each owner’s Self Assessment return.
When co-owners have different tax positions
Owners often have different incomes, losses or reliefs. One may have capital losses brought forward to use against their share, while another may have lived in the property and qualify for private residence relief. Each owner calculates their own position, so it’s worth working out the figures for every owner before you agree a sale date. Selling just after 5 April can also push one owner’s gain into a tax year where their income is lower.
Frequently asked questions
Can one owner pay all the tax?
No, each owner is liable for their own share.
What if we bought at different times?
Each owner uses their own costs and dates.
Can losses be shared?
No, each owner uses their own losses.
Do we need a valuation?
Only for transfers or where the original cost is unknown.
Related: CGT on the disposal of property, the CGT reporting deadline and Form 17 for landlords.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with Capital Gains Tax on a jointly owned property. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
