Capital Gains Tax Calculator UK 2026 — CGT Rates & Allowances
Calculate capital gains tax on property, shares, and other assets. Understand CGT rates, allowances, reliefs, and how to minimise your tax bill.
·4 min read
Capital gains tax applies when you sell or dispose of assets that have increased in value. Here’s how to calculate your liability and reduce it legally.
CGT Overview 2026/27
Key Figures
Element
Amount
Annual exemption
£3,000
Basic rate
18% (most assets), 18% (property)
Higher rate
24% (most assets), 24% (property)
BADR rate
10%
BADR lifetime limit
£1,000,000
CGT Rates Explained
Standard Rates
Your Income Tax Band
Rate on Most Gains
Rate on Property
Basic rate taxpayer
18%
18%
Higher/additional rate
24%
24%
How Your Tax Band Is Determined
Step
Action
1
Calculate taxable income
2
Add capital gains
3
Gains within basic rate band = 18%
4
Gains above basic rate band = 24%
CGT Quick Calculator
Shares and Investments
Gain After Exemption
Basic Rate (18%)
Higher Rate (24%)
£5,000
£900
£1,200
£10,000
£1,800
£2,400
£25,000
£4,500
£6,000
£50,000
£9,000
£12,000
£100,000
£18,000
£24,000
Second Property
Gain After Exemption
Basic Rate (18%)
Higher Rate (24%)
£25,000
£4,500
£6,000
£50,000
£9,000
£12,000
£100,000
£18,000
£24,000
£150,000
£27,000
£36,000
£200,000
£36,000
£48,000
How to Calculate Your Gain
Basic Calculation
Step
Calculation
Sale proceeds
What you received
Less: Acquisition cost
What you paid
Less: Allowable costs
Purchase costs, improvements
Equals: Total gain
Less: Annual exemption
£3,000
Equals: Taxable gain
Apply: CGT rate
18% or 24%
Example: Share Sale
Item
Amount
Sale proceeds
£50,000
Original purchase cost
£20,000
Dealing costs (buy + sell)
£500
Gain
£29,500
Annual exemption
-£3,000
Taxable gain
£26,500
CGT at 24% (higher rate)
£6,360
Example: Second Property Sale
Item
Amount
Sale proceeds
£350,000
Purchase price
£200,000
Stamp duty paid
£7,500
Legal fees (both ends)
£3,000
Home improvements
£25,000
Selling costs (agent)
£5,250
Gain
£109,250
Annual exemption
-£3,000
Taxable gain
£106,250
CGT at 24% (higher rate)
£25,500
Allowable Costs
What You Can Deduct
Cost Type
Examples
Purchase costs
Price, legal fees, stamp duty
Sale costs
Agent fees, legal fees
Improvement costs
Extensions, renovations
Costs of establishing title
If disputed
What You Cannot Deduct
Not Allowable
Why
Maintenance and repairs
Revenue not capital
Mortgage interest
Already claimed elsewhere
Insurance
Revenue expense
Your own time
Not a paid cost
Decoration
Maintenance
Main Residence Relief
Private Residence Relief (PRR)
If You
PRR
Lived there throughout
100% exempt
Lived there for part
Proportional relief
Had lodgers
Usually still exempt
Worked from home
Usually still exempt
Let it out
Partial restriction
Letting Relief
Feature
Details
When it applies
You lived there AND let it out
Amount
Lower of: gain from letting, PRR, or £40,000
Result
Reduces gain further
Example: Partial PRR
Ownership Period
10 years
Lived there
6 years
Let out
4 years
Total gain
£100,000
PRR: 6 + 9 months* = 6.75 years
67.5% = £67,500 exempt
Letting relief
£32,500 (lower of amounts)
Taxable gain
£0
*Final 9 months always exempt if ever your home.
Business Asset Disposal Relief (BADR)
What Qualifies
Asset Type
Requirement
Business you own
Sole trader for 2+ years
Shares in your company
5%+ and employee/director for 2+ years
Partnership interest
Partner for 2+ years
Business assets
Used in your business
BADR Benefit
Without BADR
With BADR
24% CGT
10% CGT
£100,000 gain = £24,000 tax
£100,000 gain = £10,000 tax
Save: £14,000
Lifetime limit: £1,000,000 of gains at 10%.
Tax-Free Gains (No CGT)
Exempt Assets
Asset
Why Exempt
Main residence
PRR
ISA/pension gains
Tax wrapper
Your car
Exempt
Personal items under £6,000
Chattels exemption
Gilts
Government bonds
Premium Bonds
Exempt
Gifts to spouse
No gain/no loss
Gifts to charity
Exempt
Betting/lottery winnings
Not taxed
Strategies to Reduce CGT
Legal Ways to Minimise CGT
Strategy
How It Works
Use annual exemption
£3,000/year, use it or lose it
Transfer to spouse
Use both exemptions
Bed and ISA
Sell and rebuy in ISA
Time your sale
Spread across tax years
Claim all costs
Don’t miss allowable expenses
Offset losses
Current and brought forward
BADR
If qualifying business asset
Gift Hold-Over Relief
Defer gain on business gifts
Using Both Exemptions (Married Couple)
Without Transfer
With Transfer
You: £20,000 gain
Transfer £10,000 to spouse
Exemption: £3,000
You: £10,000, exemption £3,000
Taxable: £17,000
Spouse: £10,000, exemption £3,000
CGT at 24%: £4,080
Total taxable: £14,000
CGT at 24%: £3,360
Saving: £720
Bed and ISA
Step
Action
1
Sell shares (crystallise gain, use exemption)
2
Wait 30+ days OR
2a
Immediately rebuy in ISA
3
Future gains tax-free
Losses
How Losses Work
Rule
Details
Current year losses
Must use against gains
Prior year losses
Can carry forward indefinitely
Cannot create refund
Only reduce to zero
Must claim
Within 4 years
Loss Example
Tax Year
Gains
Losses
Net Position
Year 1
£15,000
£20,000
£5,000 loss carried forward
Year 2
£10,000
£0
Use £7,000 c/f loss
Taxable: £0 (after exemption)
£0 loss remaining
Reporting and Payment
When to Report
Situation
Deadline
Property sale
60 days (on account)
Other assets
Self-assessment (31 Jan)
Property CGT Payment
Timeline
Action
Day 1
Complete property sale
Day 60
Report and pay CGT on account
Following 31 Jan
Final reconciliation
Key Takeaways
Rates are 18%/24% — depending on your tax band
£3,000 annual exemption — use every year
Main home exempt — under Private Residence Relief
Claim all costs — purchase, improvements, sale costs