Guide

Capital Gains Tax on Jointly Owned Property: How the Gain Is Split, 2026/27

Written by James Whitfield · Last checked 19 October 2026 Checked against GOV.UK and HMRC helpsheets

Quick answer

When a property is owned jointly, each owner pays Capital Gains Tax only on their own share of the gain.¹ Each one deducts their own £3,000 allowance,⁴ pays 18% or 24% depending on their own income,³ and, for a UK residential sale with tax to pay, files their own 60-day return and pays within 60 days of completion.² Two owners on a £54,000 gain can pay over £1,400 less between them than one owner would.

Key facts (2026/27)

"If you own property jointly with other people, work out the gain for the share that you own."¹
"You must report your own gain or loss": one 60-day return per owner with tax to pay.²
£3,000 annual exempt amount per person; rates 18% within your unused basic-rate band, 24% above.⁴³
Transfers between spouses or civil partners living together: no gain, no loss.⁵
Private Residence Relief depends on each owner's own occupation.⁶
Figures checked 19 October 2026, before the Autumn Budget on 28 October 2026.

How is the gain split between joint owners?

Work out the gain on the whole property first (sale price less selling costs, purchase price, buying costs and improvements), then take each owner's share of it.¹ The share is your beneficial interest: half each for joint tenants, or the shares set out in a declaration of trust for tenants in common, such as 70/30. Each owner then:

deducts their own £3,000 annual exempt amount, if they have not used it on other gains;⁴
sets their own capital losses against their share;
pays 18% on the part that fits in their own unused basic-rate band and 24% on the rest.³

An inherited share starts from its probate value, and a share received as a gift from someone other than a spouse starts from its market value at the date of the gift.¹ See CGT on inherited property and gifting property to children.

Worked example: two siblings sell an inherited house

Sam and Alex inherited their mother's house in equal shares in 2019, at a probate value of £240,000. Neither lived in it. They sell in October 2026 for £300,000, with £6,000 of agent and legal fees. Sam is a higher-rate taxpayer. Alex has £25,000 of taxable income, leaving £12,700 of the £37,700 basic-rate band unused.

CGT on a 50/50 sale, 2026/27

Gain on the whole house: £300,000 − £6,000 − £240,000	£54,000
Each owner's 50% share	£27,000
Sam: (£27,000 − £3,000) × 24%	£5,760.00
Alex: £12,700 × 18%	£2,286.00
Alex: £11,300 × 24%	£2,712.00
Alex's total	£4,998.00
Tax between them, each paid on their own 60-day return	£10,758.00

If Sam had owned the whole house alone, the tax would be (£54,000 − £3,000) × 24% = £12,240, so splitting the gain saves £1,482: one extra £3,000 allowance and part of Alex's basic-rate band. Each sibling has 60 days from completion to file and pay; one return does not cover both.

Want the 60-day steps and a property gain worksheet you can each fill in? get the CGT Survival Pack, £4.99 →

Do joint owners each file a 60-day return?

Yes. GOV.UK says "you must report your own gain or loss",² so every UK-resident owner with CGT to pay on their share files a separate UK property return within 60 days of completion and pays their own tax. An owner whose share is covered by their allowance, losses or Private Residence Relief has nothing to file as a UK resident. Non-resident co-owners must report every UK property disposal, even with no tax. The step-by-step is in how to file the 60-day return.

What if only one owner lived in the property?

Private Residence Relief is given for periods the property was your only or main residence.⁶ A couple who both lived there both get it; a parent and child who bought together where only the child lived there do not share it equally: the child's share can be relieved for their years of occupation, while the parent pays CGT on their share of the gain. See CGT on a former home for how the time-based relief and the final 9 months work.

Can you move a share to your spouse before selling?

Yes. A gift or transfer between spouses or civil partners who live together is treated as no gain and no loss, so no CGT arises on it.⁵ Moving part of a property to a spouse with unused allowance or basic-rate band before a sale can cut the total bill. It must be a genuine, outright transfer of the beneficial interest, made before the sale contract, and the 60-day returns then follow the new shares. The spouse transfer guide has a worked example.

This does not work for unmarried partners or other family members: a gift to them is a disposal at market value, which can create a gain for the person giving.¹

Work out your own share

Enter your share of the sale price and costs, and your own income, to see your 2026/27 CGT at 18% and 24%.

Open the property CGT calculator

Frequently asked questions

How is capital gains tax split on jointly owned property?

Each owner works out the gain on the share they own and pays CGT on it. GOV.UK says that if you own property jointly with other people, you work out the gain for the share that you own.

Does each joint owner get the £3,000 allowance?

Yes. The £3,000 annual exempt amount is per person, so two owners can each set £3,000 against their own share of the gain, and each pays 18% or 24% depending on their own income.

Do joint owners file one 60-day return or two?

One each. GOV.UK says you must report your own gain or loss, so every owner with CGT to pay files their own UK property return and pays within 60 days of completion.

What if only one of us lived in the property?

Private Residence Relief depends on each owner's own occupation. An owner who lived there as their main home can get relief for those periods; a co-owner who never lived there pays CGT on their share of the gain.

Can I move my share to my spouse before we sell?

Yes. A transfer between spouses or civil partners living together is on a no gain, no loss basis, so it can let a couple use both allowances and both basic-rate bands. It must be a genuine transfer of ownership. A transfer to an unmarried partner is a disposal at market value.

This page is general information, not tax or legal advice. How a property is held (joint tenants or tenants in common) and any declaration of trust decide the shares; check your title documents and take advice if they are unclear.

Sources & references

The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.

Verified against published HMRC and GOV.UK guidance.