Capital Gains Tax Calculator
✓ Verified for 2026/27Gain & Income Details
Capital Gains Tax (CGT) is charged on profits when selling an asset. You have a tax-free allowance of £3,000. CGT rates depend on your other taxable income: basic rate taxpayers pay 18% (18% for property) up to the basic rate threshold, and higher rate taxpayers pay 24% (24% for property).
Capital Gains Breakdown
💡 What is UK Capital Gains Tax (CGT) in 2026/27?
Capital Gains Tax (CGT) is charged on the profit (not the total sale proceeds) you realize when disposing of an asset that has increased in value above your £3,000 annual tax-free exemption. Following recent statutory rate alignments, both residential property and standard assets (shares, cryptocurrency, funds) are taxed at identical rates: 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers. Residential property disposals must be reported and paid to HMRC within 60 days of completion.
UK Capital Gains Tax Rates Matrix (2026/27 Tax Year)
Your applicable CGT rate depends on your total taxable income (salary, rental profits, dividends) combined with your net capital gain. Any gain that falls within your unused basic rate income tax band (£12,570 to £50,270) is taxed at the lower rate; all gains exceeding £50,270 are taxed at the higher rate.
| Asset Class / Disposal Type | Basic Rate Taxpayer | Higher / Additional Rate | Annual Allowance | HMRC Reporting Deadline |
|---|---|---|---|---|
| Residential Property (Second Homes / BTL) | 18% | 24% | £3,000 | 60 Days from Completion |
| Listed Shares, ETFs, OEICs & Unit Trusts | 18% | 24% | £3,000 | Self Assessment (31 Jan) |
| Cryptocurrency, Tokens & NFTs | 18% | 24% | £3,000 | Self Assessment (31 Jan) |
| Unlisted Private Shares (Non-BADR) | 18% | 24% | £3,000 | Self Assessment (31 Jan) |
| Business Asset Disposal Relief (BADR) | 18% Flat Rate (£1m Lifetime Limit) | £3,000 | Self Assessment (31 Jan) | |
| Trusts & Personal Representatives | 24% Flat Rate | £1,500 (max) | Self Assessment / 60 Days | |
Allowable Deductions: How to Reduce Your Net Capital Gain
HMRC strictly defines which expenses can be offset against your gross disposal proceeds. Deducting allowable transactional and capital costs directly lowers your taxable gain and tax liability.
| ✅ Legitimate Allowable Costs (Deductible) | ❌ Disallowed Costs (Non-Deductible for CGT) |
|---|---|
| Acquisition Fees: Stamp Duty (SDLT/LBTT/LTT), solicitors' legal conveyancing fees, and surveyor/valuation costs paid when buying. | Routine Maintenance: General decorating, fixing broken tiles, repainting, boiler servicing, or repairing damaged windows. |
| Disposal Costs: Estate agent commission, auctioneer fees, solicitors' sale conveyancing fees, and marketing/advertising charges. | Mortgage & Finance Costs: Mortgage interest, broker arrangement fees, and loan repayment charges (claimed under Section 24 income tax). |
| Capital Improvements: Substantial structural enhancements that add permanent value (e.g. extensions, loft conversions, adding central heating). | Holding Costs: Council tax, ground rent, service charges, buildings insurance, and utility bills paid during ownership. |
| Title & Defense Costs: Professional fees incurred establishing, preserving, or defending title ownership of the asset. | Like-for-Like Replacements: Replacing an existing kitchen or bathroom with equivalent standard units (treated as revenue repairs). |
⚠️ The Mandatory 60-Day UK Residential Property Reporting Rule
If you sell or dispose of a UK residential property (such as a buy-to-let, second home, or inherited house) and have a Capital Gains Tax liability to pay, you must report and pay the tax online within 60 days of the completion date using HMRC’s Capital Gains Tax on UK property service.
- Late Filing Penalties: Automatic £100 fixed penalty if missed by 1 day, plus 5% of tax due (£300 minimum) after 6 months, and an additional 5% after 12 months.
- Late Payment Interest: HMRC charges daily compound interest on late payments at the official Bank of England base rate + 2.5%.
Tax-Optimization Strategies: How to Pay Less CGT Legally
1. Inter-Spouse Asset Transfers
Transfers of assets between married couples and civil partners living together take place on a “no gain, no loss” basis. By transferring 50% (or more) of an asset into your spouse’s name prior to sale, you combine two individual £3,000 allowances (£6,000 total tax-free) and utilize your spouse’s lower 18% basic rate tax band if they earn less.
2. Bed & ISA Strategy
While you cannot directly transfer general investment shares into an ISA, you can execute a “Bed & ISA”: sell shares in a taxable account up to your £3,000 allowance (triggering 0% tax), and immediately repurchase them inside your tax-free Stocks & Shares ISA (up to the £20,000 annual ISA limit), shielding all future growth from CGT and dividend tax forever.
3. Crystallize Capital Losses
If you have loss-making investments (e.g. shares or cryptoassets), sell them in the same tax year to offset your capital gains. Unused capital losses must be registered with HMRC on your Self Assessment within 4 years and can then be carried forward indefinitely to reduce future taxable gains.
4. Private Residence Relief (PRR)
Your primary home is 100% exempt from CGT under Private Residence Relief. If you lived in a property as your main residence and later rented it out, you qualify for full PRR for the period you occupied it, plus the statutory final 9 months of ownership, regardless of whether you lived there during those 9 months.
Worked Mathematical Examples (Step-by-Step)
See exactly how HMRC calculates Capital Gains Tax across different income levels, property deductions, and spousal transfers.
Example 1: Buy-to-Let Property Sale by a Higher-Rate Taxpayer
Sarah earns £65,000 gross salary (Higher Rate 40% income taxpayer). She sells a buy-to-let residential apartment for £340,000, which she bought for £230,000.
2. Less Purchase Price: -£230,000
3. Less Allowable Costs (SDLT £7,500 + Legal £2,500 + Estate Agent £5,000): -£15,000
4. Less Capital Improvement (Loft Conversion): -£15,000
5. Net Capital Gain: £340,000 - (£230,000 + £15,000 + £15,000) = £80,000
6. Less Annual Exempt Amount (Allowance): £80,000 - £3,000 = £77,000 Taxable Gain
7. Tax Rate Applied: Because Sarah’s salary (£65,000) exceeds £50,270, full gain is in the Higher Band (24%).
8. Total Capital Gains Tax Due = £77,000 × 24% = £18,480.00 (Due within 60 days)
Example 2: Basic-Rate Taxpayer Selling Shares with Tax Band Spillover
James earns £32,000 salary (Basic Rate 20% income taxpayer). He realizes a net gain of £35,000 selling non-ISA shares.
2. Less Annual Exemption: £35,000 - £3,000 = £32,000 Taxable Gain
3. Calculate Remaining Basic Rate Band: £50,270 - £32,000 (Salary) = £18,270 unused basic band.
4. Basic Rate Tax on First £18,270: £18,270 × 18% = £3,288.60
5. Higher Rate Tax on Spillover (£32,000 - £18,270 = £13,730): £13,730 × 24% = £3,295.20
6. Total Capital Gains Tax Due = £3,288.60 + £3,295.20 = £6,583.80
Example 3: Married Couple Transferring Property to Non-Working Spouse
Mark earns £90,000 (Higher Rate). His wife Emma has no taxable income. Mark owns an investment property with an £80,000 taxable gain.
Taxable Gain = £80,000 - £3,000 (Mark’s allowance) = £77,000.
Tax Due @ 24% (Higher Rate) = £18,480.00
Option B (Mark transfers 50% to Emma before sale):
Mark’s Share: £40,000 - £3,000 = £37,000 @ 24% = £8,880.00
Emma’s Share: £40,000 - £3,000 = £37,000. Emma has full £37,700 basic rate band available @ 18% = £6,660.00
Combined Tax Due = £8,880.00 + £6,660.00 = £15,540.00
Total Spousal Tax Saving = £18,480.00 - £15,540.00 = £2,940.00 (Cash Saved)
Explore Related Tax Calculators & Guides
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Frequently Asked Questions (UK Capital Gains Tax 2026/27)
- Acquisition: Original purchase price, Stamp Duty (SDLT), legal conveyancing fees, and structural survey costs.
- Disposal: Estate agent commission, legal sale fees, and marketing/advertising costs.
- Capital Improvements: Substantial structural works that add value (e.g., loft conversions, extensions, central heating installations). Routine maintenance, repairs, and decorating are disallowed.
How We Calculated This
- Calculate the Gross Capital Gain: Subtract the asset's original acquisition cost (purchase price) from the final disposal proceeds (sale price). You can deduct legitimate qualifying acquisition fees (such as Stamp Duty Land Tax, solicitors' conveyancing, and structural surveys), capital enhancement costs (such as structural extensions or loft conversions, excluding routine maintenance), and disposal costs (such as estate agent commission and legal sale fees).
- Apply the Statutory Annual Exempt Amount (Allowance): For the 2026/27 tax year, deduct the statutory annual tax-free Capital Gains Allowance of £3,000 per individual. Married couples and civil partners holding assets jointly can combine allowances to secure £6,000 of tax-free gains. Note that the allowance is a personal entitlement and cannot be carried forward to future tax years.
- Assess Applicable CGT Rates: Determine the appropriate tax rates based on statutory rules. For the 2026/27 tax year, both standard assets (shares, cryptocurrency, unit trusts) and residential property are aligned at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers.
- Calculate Unused Basic Rate Income Tax Band: Add your net taxable capital gain to your other taxable income (salary, rental profits, pension, dividends) to determine how much of the gain falls within your remaining basic rate band (£50,270 threshold minus taxable income). Gains fitting within the unused band are taxed at 18%, and the remainder is taxed at 24%.
- Apply Business Asset Disposal Relief (BADR): If the gain qualifies for Business Asset Disposal Relief (formerly Entrepreneurs' Relief), apply the preferential 18% flat rate (for disposals on or after 6 April 2026) up to a lifetime limit of £1,000,000 of qualifying gains.
- Comply with 60-Day Residential Property Reporting Mandate: If selling a UK residential property with CGT due, report the gain and pay the tax online via HMRC's Capital Gains Tax on UK property service within 60 days of the completion date.
Real-World Examples
A higher-rate taxpayer (earning £65,000 salary) sells a buy-to-let residential property for £340,000 (purchased for £230,000), deducting allowable legal fees, SDLT, estate agent commission, and a loft conversion.
Step 1: Gross Disposal Proceeds = £340,000.00
Less Acquisition Cost = £230,000.00
Less Transaction Costs (SDLT £7,500 + Legal £2,500 + Agent £5,000) = £15,000.00
Less Capital Improvement (Loft Conversion) = £15,000.00
Net Capital Gain = £340,000.00 - (£230,000.00 + £15,000.00 + £15,000.00) = £80,000.00
Step 2: Apply Annual Exempt Amount:
Taxable Gain = £80,000.00 - £3,000.00 = £77,000.00
Step 3: Determine Tax Band:
Gross salary of £65,000 exceeds the £50,270 basic rate ceiling; the entire £77,000 gain is taxed at the Higher Rate (24%).
Step 4: Calculate Total CGT Due:
Total Capital Gains Tax Due = £77,000.00 * 0.24 = £18,480.00 (Payable to HMRC within 60 days of completion)A basic-rate taxpayer earning £32,000 gross salary sells non-ISA shares for a net capital gain of £35,000, utilizing their remaining basic rate band at 18% and spillover at 24%.
Step 1: Net Capital Gain = £35,000.00
Step 2: Apply Annual Exemption:
Taxable Gain = £35,000.00 - £3,000.00 = £32,000.00
Step 3: Calculate Remaining Basic Rate Band:
Unused Basic Rate Band = £50,270.00 - £32,000.00 (Salary) = £18,270.00
Step 4: Calculate CGT Due:
Portion in Basic Band: £18,270.00 * 0.18 = £3,288.60
Portion in Higher Band (£32,000.00 - £18,270.00 = £13,730.00): £13,730.00 * 0.24 = £3,295.20
Total Capital Gains Tax Due = £3,288.60 + £3,295.20 = £6,583.80A higher-rate earner transfers 50% equity of an investment asset with an £80,000 gain to their non-working spouse on a no gain/no loss basis, saving £2,940 in tax.
Scenario A (Single Owner Sale):
Taxable Gain = £80,000.00 - £3,000.00 = £77,000.00 @ 24% = £18,480.00
Scenario B (50/50 Spousal Transfer before Sale):
Owner Share: £40,000.00 - £3,000.00 = £37,000.00 @ 24% (Higher Rate) = £8,880.00
Spouse Share: £40,000.00 - £3,000.00 = £37,000.00 @ 18% (Basic Rate) = £6,660.00
Combined Tax Due = £8,880.00 + £6,660.00 = £15,540.00
Total Tax Saved via Spousal Transfer = £18,480.00 - £15,540.00 = £2,940.00 (Cash Saved)