UK Capital Gains Tax Calculator 2025/26
Calculate your Capital Gains Tax liability for 2025/26 free and privately. Enter your asset type, purchase and sale prices, associated costs, and your taxable income to see the exact CGT owed — including the £3,000 annual exempt amount, tax band split, and effective rate. All calculations run in your browser and no data is sent anywhere.
| Item | Amount |
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| Band | Gain in Band | Rate | Tax |
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How UK Capital Gains Tax Works in 2025/26
Capital Gains Tax (CGT) is charged on the profit you make when you dispose of an asset that has increased in value. "Dispose of" includes selling, gifting, swapping, or receiving compensation for an asset. CGT is not charged on the full sale price — only on the gain, which is the difference between what you paid (plus buying costs) and what you received (minus selling costs).
For 2025/26, every individual receives an annual exempt amount of £3,000. This allowance was £12,300 as recently as 2022/23 before successive cuts to £6,000 in 2023/24 and £6,000 in 2024/25, finally halving to £3,000 from April 2024. The dramatic reduction means that far more investors, landlords, and business owners are now paying CGT than in previous years — making accurate calculation essential.
Gains are added on top of your other income for band purposes. Your income fills the basic and higher rate bands first, and the gain occupies whatever band space remains. If your income already exceeds £50,270, the entire gain is taxed at higher rates. If your income is below the threshold and the gain is large, the portion of the gain that pushes total income above £50,270 is taxed at the higher rate while the rest benefits from the basic rate.
CGT Calculation Formula (2025/26)
Gross gain = Sale proceeds − Purchase cost − Purchase & improvement costs − Sale costs
Net gain after losses = Gross gain − Current year losses − Carried-forward losses (to AEA floor)
Taxable gain = Net gain − Annual exempt amount (£3,000)
CGT owed = Taxable gain × applicable rate (10%/18% basic or 20%/24% higher)
CGT Rates for Different Asset Types
The CGT rate you pay depends on both the type of asset and your income tax band. From October 2024 the government increased the rates on shares and other assets while the residential property rates were held broadly steady.
| Asset Type | Basic Rate | Higher / Additional Rate |
|---|---|---|
| Shares, ETFs, crypto, collectibles | 10% | 20% |
| Residential property (not main home) | 18% | 24% |
| Commercial property | 10% | 20% |
| Business assets (BADR) | 10% (lifetime limit £1M) | 10% (within BADR limit) |
Your main home is usually fully exempt from CGT under Private Residence Relief (PRR), provided you have occupied it as your principal private residence throughout ownership. If you let out all or part of it, or used it for business, a proportion of the gain may become chargeable. Lettings Relief was restricted from April 2020 to situations where the owner and tenant share the property.
Assets held inside a Stocks and Shares ISA, Lifetime ISA, or pension (SIPP) are entirely outside the CGT regime. Similarly, transfers between spouses and civil partners are made at a "no gain, no loss" value and are CGT-free at the point of transfer.
How to Reduce Your Capital Gains Tax Bill
Several legitimate strategies can reduce your CGT liability:
- Use your annual exempt amount every year. The £3,000 allowance cannot be carried forward. If you have accrued gains in your portfolio, consider realising up to £3,000 of gains each tax year to use the allowance — a strategy known as "bed and ISA" or "bed and spouse."
- Bed and ISA. Sell holdings outside an ISA, crystalise the gain (using your annual exempt amount if possible), and immediately repurchase the same investment inside your ISA. Future growth and income are then sheltered from both CGT and income tax.
- Transfer assets to a spouse. Transfers between spouses are CGT-free. Once the asset is in the lower-earning spouse's name, disposal uses their CGT allowance and, if their income is lower, their basic rate band — potentially halving the effective rate.
- Offset capital losses. Keep records of all loss-making disposals. Losses in the current tax year must be offset first; losses carried forward from prior years can then be applied but only to reduce the chargeable gain to the £3,000 annual exempt amount, not below it.
- Time disposals across tax years. If a large gain straddles the tax year end (5 April), splitting the disposal into two smaller tranches in consecutive years allows two annual exempt amounts to be used — saving up to £600 in CGT at the basic rate.
- Pension contributions. Making a pension contribution extends your basic rate band, potentially keeping more of your gain below £50,270 and taxed at the lower rate.
CGT Deadlines and Payment
The CGT reporting and payment deadline depends on the asset type:
- UK residential property: You must report and pay CGT within 60 days of completion using the HMRC "Report and Pay CGT on UK Property" online service. This applies even if you are already registered for Self Assessment. Failure to report within 60 days triggers an automatic £100 penalty, with further daily penalties if the delay continues.
- All other assets (shares, commercial property, crypto, etc.): Report via Self Assessment. The return for 2025/26 (tax year ending 5 April 2026) is due by 31 January 2027. Any CGT owed must also be paid by 31 January 2027. Late payment attracts interest at HMRC's prevailing rate (currently Bank Rate + 2.5%) plus potential surcharges.
If your total gains for the year are within the £3,000 annual exempt amount and you have no losses to register, no report is required. However, if you are already completing a Self Assessment return for other reasons (self-employment, rental income, etc.), HMRC recommends including all disposals on the return regardless.
Last updated: April 2025 — reflects 2025/26 rates and annual exempt amount.
Frequently Asked Questions
What is the CGT annual exempt amount for 2025/26?
The Capital Gains Tax annual exempt amount for 2025/26 is \u00a33,000. This was reduced from \u00a36,000 in 2024/25 and \u00a312,300 in 2022/23. Every individual receives this allowance each tax year and any gains below this threshold are entirely free of CGT. It cannot be carried forward to future years so use it or lose it.
What CGT rate do I pay on shares?
For shares, ETFs, funds, and other non-residential-property assets, basic rate taxpayers pay 10% CGT and higher or additional rate taxpayers pay 20%. Your tax band is determined by your total taxable income plus the gain. If the gain straddles the basic and higher rate threshold (\u00a350,270 in 2025/26), the portion in each band is taxed at the respective rate.
How is CGT calculated on residential property?
Residential property gains (other than your main home, which is usually exempt under Private Residence Relief) are taxed at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. The higher rates reflect the government's policy to discourage speculative property investment. Commercial property is taxed at 10% or 20% like other assets, not at the residential property rates.
When do I need to report capital gains to HMRC?
For residential property sales, you must report and pay CGT within 60 days of completion using HMRC\u2019s Capital Gains Tax on UK property service. For all other assets (shares, commercial property, etc.), you report via Self Assessment. Returns for 2025/26 are due by 31 January 2027, with tax also payable by that date. If your total gains exceed the annual exempt amount or you have losses to report, a return is required.
Can I offset capital losses against gains?
Yes. Capital losses in the same tax year are offset against gains before applying the annual exempt amount. Losses carried forward from previous years can also be offset, but only to the extent needed to reduce the net gain to the annual exempt amount (\u00a33,000) \u2014 you cannot use carried-forward losses to create a loss below that threshold. Losses must be reported to HMRC within four years to be usable.
What assets are exempt from CGT?
Several asset types are fully exempt from CGT: your main home (under Private Residence Relief, subject to conditions), assets held in an ISA or SIPP, UK government gilts, Premium Bonds, personal possessions (chattels) worth \u00a36,000 or less when sold, cars, and winnings from gambling or the lottery. Gifts to a spouse or civil partner and charitable donations are also exempt. Transfers on death are exempt from CGT (though inheritance tax may apply).