Capital Gains Tax Calculator
e.g. legal fees, agent fees, stamp duty paid
e.g. extensions, renovations (not maintenance)
Salary, pension, self-employed profit etc.
Doubles the tax-free allowance to \u00a36,000
How Capital Gains Tax Works in 2026/27
Capital Gains Tax (CGT) is paid on the profit you make when you sell or dispose of an asset that has gone up in value. You only pay CGT on the gain \u2014 not the full amount you receive. Every individual gets a tax-free annual CGT allowance of \u00a33,000 before any tax is due.
The rate you pay depends on your total income and what type of asset you sold. Following the Autumn Budget 2024, shares and property now follow the same main rates. Business Asset Disposal Relief (BADR) offers a reduced rate for qualifying business owners.
If you're disposing of a jointly-owned asset with your spouse or civil partner, you can each use your annual allowance \u2014 effectively doubling the tax-free amount to \u00a36,000.
CGT on Shares & Investments
Profits from selling shares, funds and other investments are taxed at 18% if you're a basic rate taxpayer, or 24% if you're higher or additional rate. Shares held inside an ISA are completely exempt from CGT \u2014 making ISAs one of the most powerful tax-saving tools available to UK investors.
CGT on Residential Property
Property gains are taxed at 18% or 24% following the Budget 2024 changes. If the property was your main home at any point, Private Residence Relief (PRR) may reduce or eliminate CGT due. Important: residential property disposals must be reported to HMRC and any tax paid within 60 days of completion.
Business Asset Disposal Relief (BADR)
Formerly Entrepreneurs' Relief, BADR lets qualifying business owners pay a reduced 14% CGT rate on gains up to a \u00a31 million lifetime limit. You must have owned the business and worked in it for at least 2 years before the sale. Always check the current rate with a tax adviser \u2014 it has changed in recent Budgets.
Common CGT Scenarios \u2014 2026/27
| Gain | Income Band | Asset | CGT Due | Effective Rate |
|---|---|---|---|---|
| \u00a310,000 | Basic rate | Shares | \u00a31,260 | 12.6% |
| \u00a320,000 | Basic rate | Shares | \u00a33,060 | 15.3% |
| \u00a320,000 | Higher rate | Shares | \u00a34,080 | 20.4% |
| \u00a350,000 | Higher rate | Property | \u00a311,280 | 22.6% |
| \u00a3100,000 | Higher rate | Shares | \u00a323,280 | 23.3% |
| \u00a3200,000 | Higher rate | Business (BADR) | \u00a327,580 | 13.8% |