UK Capital Gains Tax (CGT) Calculator 2026-27
Selling an asset? Know your tax bill before you commit.
Calculate UK Capital Gains Tax for 2026-27. Covers residential property, shares and other assets — 18% basic rate, 24% higher rate — plus the £3,000 annual exempt amount and Private Residence Relief for main home sales.
HMRC 2026-27 rates. Includes £3,000 annual exempt amount. Consult a tax adviser.
How UK Capital Gains Tax is calculated 2026-27
UK CGT applies to gains made when you sell (or otherwise dispose of) an asset. Understanding the base cost, exemptions, reliefs, and rates is critical to calculating liability accurately.
Step 1: Calculate the gain
Gain = Sale proceeds - Base cost. Base cost includes purchase price, stamp duty, legal fees, and capital improvements (not repairs). Sale proceeds are reduced by estate agent fees, legal fees, and other disposal costs.
Step 2: Deduct annual exempt amount
£3,000 annual exemption (2026-27). This has been cut dramatically from £12,300 in 2022-23. Each individual has their own exemption — married couples effectively have £6,000 between them. Use or lose it each tax year.
Step 3: Identify available reliefs
Private Residence Relief (main home), Business Asset Disposal Relief (18% rate on qualifying business disposals from 6 April 2026, £1m lifetime limit), Letting Relief (limited cases), gift hold-over relief, rollover relief for business assets.
Step 4: Apply the correct rate
The taxable gain stacks on top of your other income to determine your rate. Residential property: 18% basic rate, 24% higher rate. All other assets (shares, crypto, collectibles): also 18%/24% since 30 October 2024 (previously 10%/20%).
Step 5: Report and pay HMRC
Residential property: 60 days from completion via HMRC's real-time CGT service. Other assets: via Self Assessment by 31 January following the tax year. Late filing = minimum £100 penalty.
UK Capital Gains Tax rates 2026-27
Current CGT rates by asset type and taxpayer
| Asset type | Basic rate | Higher/additional rate |
|---|---|---|
| Residential property (not main home) | 18% | 24% |
| Shares and securities | 18% | 24% |
| Business assets (BADR qualifying) | 18% (up to £1m lifetime) | 18% |
| Collectibles, chattels, crypto | 18% | 24% |
| Annual exempt amount | £3,000 (halved from £6,000 in 2023-24) | |
How the rate is determined: stacking with income
Your taxable gain is added to your total taxable income. The portion of the gain that falls within your basic rate band (up to £50,270 total) is taxed at 18%. The portion above is taxed at 24%. Someone earning £40,000 with a £20,000 gain: after the £3,000 exempt amount, £17,000 is taxable — the first £10,270 at 18% (£1,849), the remaining £6,730 at 24% (£1,615), about £3,464 in total.
Historical rates comparison
| Tax year | Exempt amount | Non-property rates | Property rates |
|---|---|---|---|
| 2022-23 | £12,300 | 10%/20% | 18%/28% |
| 2023-24 | £6,000 | 10%/20% | 18%/28% |
| 2024-25 (to Oct) | £3,000 | 10%/20% | 18%/24% |
| Oct 2024+ / 2026-27 | £3,000 | 18%/24% | 18%/24% |
| 2026-27 | £3,000 | 18%/24% | 18%/24% |
Private Residence Relief — main home exemption
Full PRR — main home exempt
If a property has been your only or main residence for the entire period of ownership, all the gain is exempt under Private Residence Relief. The final 9 months of ownership always qualify even if you've moved out — useful for people selling after moving to a new home.
Partial PRR calculation
PRR relief = Gain × (Months as main residence + 9) ÷ Total months of ownership. Example: owned 10 years (120 months), lived in it 5 years (60 months). Relief for (60 + 9) = 69 months. Taxable portion: (120 - 69) ÷ 120 = 42.5% of the gain.
Letting Relief (now very restricted)
From April 2020, Letting Relief only applies if the owner shares the property with a tenant. Previously it gave up to £40,000 additional relief on rented former homes. Most landlords no longer qualify.
Multiple homes and nomination
If you own multiple properties, you can nominate which is your main residence for CGT purposes. Must nominate within 2 years of acquiring any additional home. Strategic nomination can significantly reduce total CGT over a lifetime of property ownership.
How to reduce UK Capital Gains Tax legally
Use the annual exemption every year
£3,000 per person per year. Unused exemptions can't be carried forward. Realise small gains each year to crystallise the allowance — known as 'bed and breakfasting' (with care to avoid anti-avoidance rules). Married couples get £6,000 combined.
Transfer assets to a spouse
Transfers between spouses and civil partners are on a no-gain/no-loss basis. Pass assets before disposal to use both exemptions and both rate bands. A married couple with one spouse on basic rate can halve CGT by transferring before sale.
Offset capital losses
Realise loss-making positions in the same year as gains to offset. Unused losses carry forward indefinitely. Must claim losses via Self Assessment within 4 years. A £5,000 loss realised can offset a £5,000 gain, saving up to £1,200 in tax.
Use ISA and SIPP wrappers
All gains inside ISAs and pensions are CGT-free. £20,000 annual ISA allowance (2026-27). Over 10 years, a couple can shelter £400,000 from CGT. The 'Bed and ISA' strategy sells holdings in a general account and immediately repurchases inside an ISA — crystallising any CGT allowance and moving future gains tax-free.
Business Asset Disposal Relief
18% CGT rate on qualifying business disposals from 6 April 2026 — up to £1 million lifetime limit (reduced from £10m in 2020). The rate was 10% until April 2025, 14% in 2025-26, and 18% from 6 April 2026. Qualifying: sole trader business, personal company shares (5%+, director/employee for 2 years). Still saves 6 percentage points vs the 24% higher rate — up to £60,000 on the full £1m limit.
Gift Hold-Over Relief
Gifts of business assets or unlisted trading company shares can use Hold-Over Relief. CGT is deferred — the recipient takes over the gifted-in base cost. Useful for family business succession planning.
FAQFrequently asked questions about UK Capital Gains Tax
When must I report and pay UK CGT?
Residential property: within 60 days of completion via HMRC's real-time CGT service. Other assets: Self Assessment by 31 January following tax year end (5 April). Late filing = automatic £100 penalty.
Can I use my spouse's CGT allowance?
Yes. Transfers between spouses are on a no-gain/no-loss basis. Both spouses have their own £3,000 annual exemption (£6,000 combined). Transfer assets before sale to use both exemptions and potentially both rate bands.
What costs can I deduct from my capital gain?
Purchase price, stamp duty on purchase, legal/conveyancing fees, estate agent fees on sale, capital improvements (not repairs), and other enhancing capital expenditure. Normal maintenance and mortgage interest are NOT deductible.
Do I pay CGT on ISA investments?
No. All gains, dividends, and interest inside an ISA are completely tax-free. £20,000 annual allowance (2026-27). One of the most powerful tax shelters for UK investors.
Do I pay CGT on cryptocurrency UK?
Yes. HMRC treats crypto as a chargeable asset — £3,000 exemption applies, 18%/24% rates. Must keep records of every trade (dates, GBP values, costs). Very active trading may be treated as income tax instead — get advice for high-volume trading.
How is CGT calculated on inherited assets?
Inherited assets get a 'base cost uplift' to market value at date of death. Future CGT is calculated from that value, not the original purchase price. Can significantly reduce tax on long-held inherited portfolios.
What is Business Asset Disposal Relief (formerly Entrepreneurs' Relief)?
BADR reduces CGT to 18% on qualifying business asset disposals from 6 April 2026 (the rate was 10% until April 2025, 14% in 2025-26, and 18% from 6 April 2026) — up to a lifetime limit of £1 million. Qualifying: sole trader businesses, personal company shares (5%+ ownership, employee/director for 2 years). The 18% rate compared to 24% higher rate still saves business owners 6 percentage points.
Where these figures come from
Every threshold and tax rate on this page is taken from HM Revenue & Customs (HMRC) via GOV.UK — the source of record for UK income tax, National Insurance, VAT, and capital gains tax.
- Income Tax rates & Personal Allowance — GOV.UK — Income Tax rates and Personal Allowances.
- National Insurance rates & thresholds — GOV.UK — National Insurance rates and categories.
- Personal Allowance taper (£100k+) — GOV.UK — Income over £100,000.
- Capital Gains Tax rates & allowance — GOV.UK — Capital Gains Tax rates.
- Dividend Tax — GOV.UK — Tax on dividends.
- ISA annual allowance — GOV.UK — Individual Savings Accounts.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the estimated Capital Gains Tax on your disposal — the gain after deductible costs, less the £3,000 annual exempt amount, taxed at 18% and/or 24% depending on where it sits against your basic-rate band (2026-27 HMRC rates).
Use this before you exchange contracts or place a sell order. Compare scenarios — splitting a disposal across two tax years, transferring part to your spouse or civil partner first, or realising a loss in the same year — to see how each changes the bill.
Not a Self Assessment return or HMRC determination. Your actual liability depends on your full return — reliefs, losses brought forward, and the exact date of disposal. Consult a chartered accountant or tax adviser for complex disposals.
Uses 2026-27 HMRC CGT rates (18%/24%) and the £3,000 annual exempt amount. All calculations run in your browser — no data is stored or sent to any server.
UK CGT is driven by three things: the size of the gain after deductible costs, the £3,000 annual exempt amount, and where the gain sits relative to your basic-rate band (£50,270 of total income including the personal allowance for 2026-27).
The taxable gain stacks on top of your income. Any part that fits below £50,270 of combined income is taxed at 18%; the rest at 24%. A lower-income year — parental leave, retirement, a sabbatical — can pull a large slice of the gain into the 18% band.
Capital losses offset gains pound for pound — same-year losses are set off automatically, and unused losses carry forward indefinitely once claimed (within 4 years). Purchase costs, stamp duty, legal fees, and capital improvements all reduce the gain.
Private Residence Relief can exempt some or all of a former home's gain (period of residence plus the final 9 months). Business Asset Disposal Relief taxes qualifying business sales at 18% up to the £1m lifetime limit.
Most UK CGT planning is about timing and wrappers: use each year's exempt amount, both spouses' allowances and rate bands, and shelter future growth inside ISAs and pensions.
The £3,000 annual exempt amount cannot be carried forward. Splitting a disposal either side of 5 April uses two years' exemptions — £6,000 of gains tax-free — and may keep more of each year's gain in the 18% band.
Transfers between spouses and civil partners are no-gain/no-loss. Moving assets across before a sale uses both £3,000 exemptions and both rate bands — a couple can cut the bill sharply if one partner pays basic rate.
Sell holdings in a general investment account (using your exempt amount) and immediately rebuy them inside a stocks and shares ISA. Future gains and dividends are then tax-free — £20,000 ISA allowance per person for 2026-27.
CGT interacts with income tax, your ISA and pension wrappers, and property decisions. Model the adjacent pieces before you commit to a disposal.
Your other taxable income sets how much of the gain is taxed at 18% vs 24%. See your full income tax and National Insurance picture first.
Income tax calculator →Model how much a stocks and shares ISA could grow completely free of CGT and dividend tax.
ISA calculator →If you're selling a second home or buy-to-let, model the stamp duty on your next purchase, including the 5% additional-property surcharge.
Stamp duty calculator →