Capital Gains Tax Calculator UK 2026/27
Free UK capital gains tax calculator using 2026/27 rates and the £3,000 annual exempt amount. Estimate your taxable gain and CGT due on shares, property and other assets in seconds. For guidance only — get professional CGT advice for any significant disposal.
Free Capital Gains Tax Calculator 2026/27
Estimate your capital gains tax based on current rates and the annual exempt amount. This tool is for guidance only; always seek professional advice for your situation.
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Enter values and click Calculate.
Rates used: 2026/27 tax year. Annual exempt amount £3,000. Basic rate: 10% (other) / 18% (residential). Higher/Additional: 20% (other) / 24% (residential). Check GOV.UK for latest.
How capital gains tax works in the UK
Capital gains tax (CGT) is a tax on the profit you make when you sell or otherwise dispose of an asset that has increased in value. You pay CGT on the gain — not the total amount you receive. Common chargeable disposals include selling a second home or buy-to-let, selling shares outside an ISA or pension, gifting an asset (other than to your spouse), and exchanging crypto. Selling your main home is normally exempt under Private Residence Relief.
HMRC calculates the tax on your chargeable gain, which is broadly the sale price minus the original cost, minus allowable costs (legal fees, agent fees, stamp duty paid on purchase, and capital improvements that added value to a property). You then subtract any reliefs, brought-forward losses, and your annual exempt amount before applying the appropriate CGT rate.
CGT rates and allowance for 2026/27
The annual exempt amount (CGT allowance) for 2026/27 is £3,000 per person. Above that, the rate depends on two factors: your income tax band and whether the asset is residential property or "other".
| Asset type | Basic-rate taxpayer | Higher / additional rate |
|---|---|---|
| Shares, second homes that aren't residential property in the technical sense (rare), business assets without BADR, crypto, most other assets | 10% | 20% |
| UK residential property that is not your main home (buy-to-let, second home, inherited property you sell) | 18% | 24% |
| Qualifying business disposals with Business Asset Disposal Relief | 10% | 10% (up to £1m lifetime) |
Important: your gain is effectively added on top of your income to work out which rate applies. If the gain straddles the basic-rate threshold, part of the gain is taxed at the lower rate and part at the higher rate. The calculator handles this for straightforward cases — for complex situations always check with a tax adviser or refer to GOV.UK.
Worked example: CGT on a buy-to-let property
Sarah bought a Reigate buy-to-let flat in 2014 for £220,000. She paid £2,000 in legal fees and £7,000 in stamp duty at purchase, and £8,000 on a new kitchen and bathroom (capital improvement, not maintenance) in 2018. She sells the flat in May 2026 for £340,000, paying £5,100 in estate agent fees and £1,500 in legal fees on sale.
Step 1 — gain before allowance:
Sale price £340,000
Less: original cost £220,000
Less: purchase costs £ 9,000 (stamp duty + legal)
Less: capital improvements £ 8,000 (kitchen/bathroom)
Less: sale costs £ 6,600 (agent + legal)
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Gain £ 96,400Step 2 — apply annual exempt amount:
Gain £ 96,400
Less: annual allowance £ 3,000
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Taxable gain £ 93,400Step 3 — apply the rate. Sarah's other taxable income for 2026/27 is £55,000, which puts her in the higher-rate band. Residential property rate for a higher-rate taxpayer is 24%:
Tax: £93,400 × 24% = £22,416Step 4 — report and pay. Because this is UK residential property and not her main home, Sarah must use HMRC's UK Property service to report and pay the £22,416 within 60 days of completion. She will also report it on her Self Assessment for 2026/27.
CGT on shares — the Section 104 holding rule
Calculating CGT on shares is more complex because investors typically buy the same shares on different dates and at different prices. HMRC applies a set of matching rules to decide which shares you have actually sold:
- Same-day rule — disposals are first matched against purchases on the same day.
- 30-day rule ("bed and breakfasting") — next, against purchases in the 30 days following the sale (this prevents resetting the base cost by selling and immediately re-buying).
- Section 104 holding — any remaining disposals are matched against the "pool", which is the total cost of all remaining shares divided by the number of shares (an average cost per share).
Shares held in a Stocks & Shares ISA or a pension are entirely exempt from CGT. Employee shares acquired through approved schemes (SAYE, SIP) often have their own CGT-saving routes — for SAYE shares, transferring directly into an ISA within 90 days of exercise can shelter all future gains.
CGT reliefs you can claim
- Private Residence Relief — your main home, throughout ownership, is exempt from CGT.
- Business Asset Disposal Relief (BADR) — 10% rate up to a £1m lifetime limit for qualifying disposals of business assets or shares in your trading company.
- Investors' Relief — 10% rate up to £10m lifetime for external investors in unlisted trading companies, held 3+ years.
- Gift Hold-Over Relief — defer the gain when gifting business assets or shares in trading companies; recipient inherits your base cost.
- Rollover Relief — defer a gain on business assets if you reinvest the proceeds into qualifying replacement business assets.
- Spouse exemption — transfers between spouses or civil partners are no-gain/no-loss, so couples can effectively share allowances and use both basic-rate bands.
- Chattels exemption — tangible movable property (e.g. paintings, antiques) sold for £6,000 or less is exempt; a special tapered calculation applies between £6,000 and £15,000.
60-day reporting rule for UK residential property
Since April 2020, UK residents disposing of UK residential property where CGT is due must report the disposal and pay the tax within 60 days of completion. This applies to second homes, buy-to-lets, inherited property sold by the beneficiary, and any property where Private Residence Relief does not fully cover the gain.
You report through HMRC's online "Report Capital Gains Tax on UK property" service. You will also include the disposal on your Self Assessment return at the end of the tax year (any over- or under-payment is reconciled then). Missing the 60-day deadline triggers automatic penalties starting at £100 and rising; interest accrues on unpaid tax.
Using capital losses
If you sell an asset for less than the cost, you have a capital loss. Losses are first offset against gains in the same tax year (you cannot choose — they must be used in full before the annual allowance). Unused losses can be carried forward indefinitely, but must be claimed in writing to HMRC within four years of the end of the tax year in which the loss arose. Once claimed, brought-forward losses can be used in future years to reduce taxable gains down to (but not below) the annual exempt amount.
CGT on cryptocurrency
HMRC treats cryptocurrency as an asset, not currency. Disposals — selling for fiat, swapping one token for another, using crypto to buy goods or services, or gifting crypto (other than to a spouse) — are all CGT events. The "Section 104 pooling" rule generally applies to tokens of the same type. Detailed records of every transaction are essential.
CGT for non-UK residents
Non-UK residents are generally outside UK CGT, but there is a major exception: UK residential property. Since April 2015 (residential) and April 2019 (commercial property and indirect disposals via "property-rich" companies), non-residents are within UK CGT on UK land and property. Non-residents must report disposals within 60 days regardless of whether tax is due.
Need help with a CGT calculation?
This calculator gives a sensible estimate for straightforward cases. If you have a more complex situation — a business sale, multiple properties, share matching rules, BADR, non-resident scenarios, or trust disposals — get professional advice before filing. We help individuals and trustees with one-off CGT calculations, 60-day property reports and ongoing planning.
Read more about our capital gains tax services, or book a free consultation.
Frequently Asked Questions
How is capital gains tax calculated in the UK? ▼
Capital gains tax is calculated in four steps. First, work out the gain: sale proceeds minus the original cost minus allowable costs (legal fees, stamp duty, capital improvements). Second, deduct any reliefs and carried-forward losses. Third, subtract the annual exempt amount (£3,000 for 2026/27). Fourth, apply the appropriate CGT rate based on your income tax band and the type of asset. Our calculator does this for you automatically.
What is the capital gains tax allowance for 2026/27? ▼
The annual exempt amount for capital gains tax in 2026/27 is £3,000 for individuals. This has been reduced significantly in recent years — it was £6,000 for 2023/24 and £12,300 for 2022/23. Trustees have a separate, lower allowance (typically half the individual amount). The allowance cannot be carried forward or transferred between spouses.
What are the UK capital gains tax rates? ▼
For 2026/27, CGT rates depend on your income tax band and the type of asset. For most assets (shares, second homes, business assets without BADR): 10% if you are a basic-rate taxpayer, 20% if you are a higher or additional-rate taxpayer. For residential property that is not your main home: 18% for basic-rate taxpayers, 24% for higher and additional-rate taxpayers. Always check GOV.UK for current rates.
When do I have to pay capital gains tax? ▼
For most disposals, you report CGT through your Self Assessment tax return by 31 January following the end of the tax year of the disposal. For UK residential property that is not your main home, you must report and pay within 60 days of completion using HMRC's online UK Property service. Late reporting attracts penalties and interest.
Do I pay CGT on my main home? ▼
Generally no. Private Residence Relief means most people do not pay CGT on the sale of their only or main home, provided it has been their main residence throughout ownership. Some restrictions apply if you have let part of the property, used part exclusively for business, or have a very large garden. If you have owned more than one property, the rules are more complex and advice is recommended.
How does CGT work on shares? ▼
When you sell shares, the gain is the difference between sale proceeds and the cost. If you bought the same shares on different dates, HMRC's "Section 104 holding" rule applies — costs are pooled and an average cost per share is used. Same-day and "bed and breakfasting" matching rules also apply. Shares held in an ISA or pension are exempt from CGT.
Can I reduce my capital gains tax bill? ▼
Yes, legitimately. Common approaches include: using your full £3,000 annual allowance each year; transferring assets to a spouse before sale to use both allowances; timing disposals across tax years; offsetting capital losses (current year and brought forward); claiming reliefs such as Business Asset Disposal Relief (10% rate up to £1m lifetime limit), Gift Hold-Over Relief or Investors' Relief; and using ISAs/pensions for future investments. Professional advice ensures you do not miss reliefs.
What is Business Asset Disposal Relief? ▼
Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) reduces the CGT rate to 10% on qualifying disposals of business assets, up to a lifetime limit of £1 million. To qualify you must usually have owned the business or shares for at least two years, and meet specific conditions about your role and shareholding. The lifetime limit was previously £10 million, so getting advice before any business sale is essential.
Do I pay CGT on inherited assets? ▼
No CGT is payable when you inherit an asset. The asset acquires a new "base cost" equal to its market value at the date of death (sometimes called "uplift" or "rebasing"). If you later sell the inherited asset, CGT applies only to the gain from the date of death value to the sale price. Inheritance tax may have applied to the estate separately.
How does CGT work for non-UK residents? ▼
Non-UK residents are generally not liable for UK CGT on disposals of UK assets — with one major exception: UK residential property. Since April 2015 non-residents have been within the scope of UK CGT on UK residential property, with 60-day reporting and payment required regardless of whether tax is due. Rules for commercial property and indirect disposals (e.g. shares in property-rich companies) are also different.
Is this calculator accurate? ▼
The calculator uses 2026/27 rates and allowances and gives a reasonable estimate for straightforward disposals. It does not account for complex situations: multiple disposals in the year, reliefs (BADR, Hold-Over, Private Residence Relief), share matching rules, non-resident scenarios or trust disposals. For any significant disposal, get professional advice before filing.
Can I use the calculator for shares in Scotland? ▼
Yes. Capital gains tax is a UK-wide tax, not devolved — so the rates and allowance are the same in Scotland, England, Wales and Northern Ireland. However, your income tax band may be determined by Scottish income tax rates if you are a Scottish taxpayer, which can affect which CGT rate applies to your gain.
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