Capital Gains Tax Calculator UK 2026–27
Calculate your Capital Gains Tax liability for 2026–27. Enter your total gain, any allowable losses, and your other income to see CGT at the correct 18% or 24% rate after the £3,000 annual exempt amount.
Rates correct for 2026–27 · Reviewed by the Richard Ross · Last updated April 2026
How Capital Gains Tax works in 2026–27
Capital Gains Tax (CGT) is charged on the profit (the “gain”) made when you sell or dispose of an asset that has increased in value. Common disposals include shares held outside an ISA, investment properties, and business assets. Your main home is generally exempt under Principal Private Residence Relief.
The annual exempt amount
Every UK resident receives an annual exempt amount — the first £3,000 of gains each tax year is completely free of CGT. Allowable losses from the same year are applied first, and then the exempt amount is applied to the remaining gain. The exempt amount has been progressively reduced from £12,300 (2022-23), making careful use of it each year increasingly important.
Unified CGT rates from October 2024
The October 2024 Autumn Budget unified CGT rates across all asset classes. Previously, residential property was taxed at 18% (basic rate) and 28% (higher rate), while other assets were charged at 10% and 20%. From 30 October 2024, a single set of rates applies to all assets:
- 18% for gains within the basic rate band
- 24% for gains above the basic rate threshold
Business Asset Disposal Relief (formerly Entrepreneurs' Relief) applies a reduced rate on qualifying business disposals, subject to a lifetime allowance of £1 million. The BADR rate has increased each year since the October 2024 Budget:
| Tax year | BADR rate |
|---|---|
| 2024–25 | 10% |
| 2025–26 | 14% |
| 2026–27 | 18% |
This calculator does not cover BADR — if you are selling a business, speak to a tax adviser.
How gains stack on top of other income
Like dividends, capital gains sit on top of all other income for the purposes of determining which rate band they fall into. Your personal allowance (£12,570) and basic rate band are first used by salary, pension, or other income — in other words, your income tax band determines which CGT rate applies. How much basic rate band remains determines the proportion of your gain taxed at 18% versus 24%.
Worked example: £40,000 salary with £20,000 gain
CGT calculation (2026–27):
- Salary: £40,000 (uses £27,430 of basic rate band after PA)
- Basic rate band remaining: £50,270 – £40,000 = £10,270
- Annual exempt amount: first £3,000 of gain is CGT-free
- Taxable gain: £20,000 – £3,000 = £17,000
- At 18% (within remaining basic rate band): £10,270 × 18% = £1,848.60
- At 24% (above basic rate band): £6,730 × 24% = £1,615.20
Total CGT: £3,463.80
Effective rate on the gain: 17.3%
Note: CGT is separate from income tax — your salary tax is unchanged. Use the take-home calculator for your full net pay.
Note that dividends are taxed separately at their own rates — see our dividend tax calculator for details. Gains on shares held in an ISA are exempt — only enter gains on shares held outside an ISA. Unlike salary and self-employment income, capital gains are not subject to National Insurance. They also do not count as income for student loan repayment purposes. Contractors who are outside IR35 and sell their company should take specialist advice on BADR eligibility.
Reporting and paying CGT
- Property disposals: report and pay within 60 days of completion.
- Other assets: report and pay via Self Assessment by 31 January following the end of the tax year.
Sources: HMRC — Capital Gains Tax (gov.uk), HMRC — CGT rates and allowances (gov.uk)
Frequently asked questions
What is the annual exempt amount for CGT in 2026-27?
The CGT annual exempt amount (AEA) for 2026-27 is £3,000. This is the total amount of capital gains you can make in a tax year before paying any CGT. The AEA has been reduced significantly from £12,300 in 2022-23 to £6,000 in 2023-24, and then to £3,000 from 2024-25. If your total gains in the year are below £3,000, you owe no CGT.
What CGT rates apply in 2026-27?
Following the October 2024 Budget, a single set of CGT rates applies to all assets. Basic rate taxpayers pay 18% on gains that fall within the basic rate band. Higher rate taxpayers, or gains that push total income into the higher rate band, pay 24%. These unified rates replaced the old residential property rates (18%/28%) and other assets rates (10%/20%), which no longer apply.
How does my other income affect which CGT rate I pay?
Gains are treated as the top slice of your income — they sit on top of your salary, pension, or other income. If your total income (salary plus gains) stays within the basic rate band (up to £50,270 of total income), gains are taxed at 18%. Any portion of gains that pushes you above £50,270 is taxed at 24%. The calculator accounts for how much basic rate band remains after your other income.
Can I offset capital losses against my gains?
Yes. Capital losses from the disposal of assets in the same tax year are automatically offset against gains before the annual exempt amount is applied. Unused losses from prior years can be carried forward indefinitely and used in future years. You must report losses to HMRC within four years of the end of the tax year in which they arose to claim them.
Do I need to report gains below the annual exempt amount?
If your total proceeds from all disposals in the year exceed four times the annual exempt amount (£12,000 in 2026-27), you must report them via Self Assessment even if no CGT is due. If you are already registered for Self Assessment, include all disposals on your return. Gains within an ISA or pension are never subject to CGT.
How much CGT do I pay on a £20,000 gain?
It depends on your other income. If your salary is £35,000 (basic rate): the first £3,000 is covered by the AEA, leaving £17,000 taxable. You have £2,700 of basic rate band left (£50,270 – £35,000 – £12,570 = £2,700). So £2,700 is taxed at 18% (£486) and £14,300 at 24% (£3,432). Total CGT: £3,918. If your salary is £55,000 (higher rate): the full £17,000 is taxed at 24% = £4,080.
Do I pay National Insurance on capital gains?
No. Capital gains are not subject to National Insurance. Unlike salary and self-employment income, CGT is a separate tax on investment profits. Gains also do not count as income for student loan repayment purposes.
What is the difference between CGT on shares and property?
Since the October 2024 Budget, there is no difference — the same unified rates (18%/24%) apply to all asset types. Previously, residential property attracted higher CGT rates (18%/28%) compared to other assets (10%/20%). The only remaining distinction is the reporting deadline: property gains must be reported and paid within 60 days of completion, while other gains are reported via annual Self Assessment.
Are ISA and pension gains subject to CGT?
No. Gains on assets held within a Stocks and Shares ISA or a pension wrapper are completely exempt from CGT. This applies regardless of the size of the gain. Only gains on assets held outside of tax-advantaged wrappers are subject to CGT. This makes maximising ISA contributions each year one of the simplest CGT planning strategies.
What is Business Asset Disposal Relief (BADR) in 2026-27?
BADR (formerly Entrepreneurs' Relief) provides a reduced CGT rate on qualifying business disposals, subject to a £1 million lifetime limit. In 2026-27, the BADR rate is 18% — up from 14% in 2025-26. BADR applies when you sell all or part of a qualifying business, or shares in your personal trading company where you hold at least 5% and have been an officer or employee for at least two years.
Related calculators
This calculator provides estimates only. Results are based on the 2026–27 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.