Hi LittlEbear10 Bee,
How the property was acquired, is not a factor in calculating capital gains tax on the disposal of a property, so it does not matter whether you paid for it with cash gift of through savings or a mortgage and so on. Capital gains will look at the acquisition cost (how much you paid for it) and the expenses incurred in acquiring the property (solicitor, estate agent even auctioneers fees etc). The total of these costs are deducted from the disposal value, as well as the costs incurred disposing of the property. Whatever remains is either a capital gain or a capital loss.
Have a look at Helpsheet HS283 (
HS283 Private Residence Relief (2023) on guidance for private residence relief. There is also a capital gains calculator at
Tax when you sell property, to help you work out if there is a gains and how much it is. You can save the calculation as a pdf file for your records and click next to register for a capital gains account, so that you can report and pay your capital gain onine, within 60 days of the completion date.
Thank you.