Thinking of selling a property in Cardiff or the surrounding areas? If the property isn’t your main home, you may be wondering whether Capital Gains Tax (CGT) applies to your sale. At Fortis Estate Agents, we specialise in guiding homeowners through every stage of the property journey — including understanding tax implications in the higher-end market.
Here’s what you need to know about Capital Gains Tax when selling property in Cardiff.
Capital Gains Tax is a tax on the profit you make when you sell an asset that has increased in value — and that includes second homes, buy-to-let investments, and inherited properties.
📌 Example: If you purchased a property in Cardiff for £400,000 and sold it for £450,000, your gain (not your total sale price) is £50,000. CGT is only payable on that £50,000.
No. If you’re selling your main residence, you may be exempt thanks to Private Residence Relief, provided that:
You’ve lived in the property as your main home throughout your ownership.
You haven’t let out any part of it (aside from having a lodger).
No rooms have been used exclusively for business purposes.
The total grounds are under 5,000 sqm (just over an acre).
The property wasn’t purchased solely for investment gains.
If you meet all of the above criteria, you won’t have to pay CGT.
You’ll generally need to pay CGT if you’re:
Selling a second home
Selling a buy-to-let property
Selling an inherited property (but only once it’s sold — not inherited)
Selling property that was used partially or entirely for business purposes
You won’t usually pay CGT if you’re gifting the property to a spouse, civil partner, or charity.
To work out your CGT liability, subtract your purchase price from the sale price to find your gain.
However, the actual amount payable can be reduced by several factors:
Annual Capital Gains Tax Allowance
Your share if the property is jointly owned
Allowable deductions (e.g., estate agent fees, solicitor fees, and the cost of capital improvements such as an extension or kitchen renovation)
Applicable tax reliefs
Specific circumstances like a compulsory purchase order
💡 The HMRC Capital Gains Tax Calculator is a useful tool, but we strongly recommend seeking professional tax advice to understand how the rules apply to your situation.
If CGT applies, here’s what you can expect:
Basic-rate taxpayers: CGT is charged at 18%
Higher-rate taxpayers: CGT is charged at 28%
Your total taxable income and the size of your gain determine which rate applies. If you're selling a high-value property in prime Cardiff areas like Cyncoed, Lisvane, or Llandaff, the 28% rate often applies.
Whether you’re:
Selling a buy-to-let in Pontcanna
Offloading a second home in Penarth
Downsizing from a luxury family home in Lisvane
...the Fortis team offers expert local insight, tailored valuations, and bespoke sales strategies to help you secure the best possible return on your investment.
We work closely with clients across Cardiff and the Vale of Glamorgan, and we understand the complexities of high-value property transactions — including the impact of Capital Gains Tax.
Selling a property is about more than just finding a buyer — it’s also about maximising profit and understanding the financial implications.
Let our experienced team guide you through your sale with confidence. Whether it’s help with valuation, marketing, or navigating CGT questions, we’re here to help.
📞 Call Fortis today on 029 2056 1111
📧 Email: hello@fortis.homes
🌐 Visit: fortis.homes
Disclaimer: This blog is for informational purposes only and does not constitute financial or tax advice. Always consult a qualified tax adviser for advice tailored to your personal circumstances.
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