UK Capital Gains Tax Calculator 2025/26

Last verified: • Updated for 2025/26 tax year
2025/26 Tax Year

Calculate your UK Capital Gains Tax liability when selling property, shares, or other assets. This calculator uses the current 2025/26 HMRC rates and automatically applies the Annual Exempt Amount of £3,000.

CGT applies to the profit you make when you sell or dispose of an asset that has increased in value. You only pay tax on the gain — not the full sale price.

Residential Property
18% Basic
24% Higher
Shares & Other Assets
10% Basic
20% Higher

Calculate Your CGT

Last verified: February 2026 — 2025/26 CGT rates
Your main home is usually exempt (Private Residence Relief)
Used to determine your CGT rate automatically
What you originally paid for the asset
The amount you sold or will sell for
Stamp duty, legal fees, improvements (not repairs)
Unused capital losses carried forward

Understanding Capital Gains Tax

Capital Gains Tax (CGT) is a tax on the profit you make when you sell (or 'dispose of') an asset that has increased in value. You only pay tax on the gain — the difference between what you paid for it and what you sell it for, minus any allowable costs.

When Do You Pay CGT?

You may need to pay CGT when you:

Spouse/Civil Partner Transfers: Transfers between spouses or civil partners are tax-free (known as 'no gain, no loss'). This can be useful for tax planning — transferring assets to the lower-earning spouse before selling.
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CGT Rates for 2025/26

Capital Gains Tax rates depend on the type of asset and your overall income:

Asset Type Basic Rate Taxpayer Higher/Additional Rate
Residential Property 18% 24%
Shares & Securities 10% 20%
Cryptocurrency 10% 20%
Other Assets 10% 20%
Carried Interest 28%
2025/26 Changes: The Annual Exempt Amount has reduced to £3,000 (from £6,000 in 2023/24). This means more people will pay CGT on smaller gains. Plan your disposals carefully.

Allowable Costs You Can Deduct

You can reduce your taxable gain by deducting certain costs:

Allowable Not Allowable
Stamp Duty Land Tax (when you bought) Interest on mortgages or loans
Solicitor/legal fees (buying and selling) Repairs and maintenance
Estate agent fees (selling) Building insurance
Capital improvements (extensions, new roof) Running costs (utilities, council tax)
Valuation fees for tax purposes Wear and tear allowance claimed
Advertising costs for sale Money spent finding tenants
Improvements vs Repairs: Adding value (extension, loft conversion, new kitchen) = allowable. Maintaining value (fixing boiler, repainting) = not allowable. The distinction is whether you've added something new or restored something old.

CGT Rates: How They've Changed

Tax Year Annual Exempt Amount Residential Property Other Assets
Basic Higher Basic Higher
2025/26£3,00018%24%10%20%
2024/25£3,00018%24%10%20%
2023/24£6,00018%28%10%20%
2022/23£12,30018%28%10%20%

Key change: The annual exempt amount dropped from £12,300 (2022/23) to £6,000 (2023/24) to £3,000 (2024/25 onwards). This means more of your gains are now taxable. Residential property higher rate dropped from 28% to 24% from October 2024.

Worked Examples

Example 1: Selling a Residential Property

Sarah (higher-rate taxpayer) bought a second home for £200,000 and sells for £350,000. She paid £5,000 in allowable costs (stamp duty, legal fees).
Step 1 — Calculate gain: £350,000 - £200,000 - £5,000 = £145,000
Step 2 — Deduct annual exempt amount: £145,000 - £3,000 = £142,000 taxable
Step 3 — Apply higher rate (residential property): £142,000 × 24% = £34,080 CGT due
Sarah must report and pay within 60 days of completion.

Example 2: Selling Shares (Basic Rate Taxpayer)

Tom (basic-rate taxpayer, £35,000 salary) bought shares for £10,000 and sells for £25,000.
Step 1 — Calculate gain: £25,000 - £10,000 = £15,000
Step 2 — Deduct annual exempt amount: £15,000 - £3,000 = £12,000 taxable
Step 3 — Check tax band: Taxable income (£35,000 - £12,570) + £12,000 gain = £34,430 — still within basic rate band (£37,700)
Step 4 — Apply basic rate (shares): £12,000 × 10% = £1,200 CGT due

Example 3: Cryptocurrency Gain (Higher Rate Taxpayer)

Alex (higher-rate taxpayer, £60,000 salary) bought Bitcoin for £5,000 and sells for £20,000.
Step 1 — Calculate gain: £20,000 - £5,000 = £15,000
Step 2 — Deduct annual exempt amount: £15,000 - £3,000 = £12,000 taxable
Step 3 — Apply higher rate (crypto = other assets): £12,000 × 20% = £2,400 CGT due
HMRC treats crypto the same as shares — 10% basic rate or 20% higher rate.

CGT Reliefs and Exemptions

Private Residence Relief

You don't pay CGT on your main home if:

Lettings Relief

If you let out your home but also lived in it, you may qualify for Lettings Relief. Since April 2020, this only applies if you were in shared occupancy with your tenant.

Business Asset Disposal Relief (BADR)

If you're selling shares in a trading company you work for, or disposing of a business you own, you may qualify for a reduced 10% rate on gains up to a lifetime limit of £1 million.

Investors' Relief

A 10% rate applies to qualifying gains on shares in unlisted trading companies, with a lifetime limit of £10 million.

Reporting and Paying CGT

For UK Residential Property

You must report and pay CGT on UK residential property within 60 days of completion using HMRC's online service. This applies to:

For Other Assets

Report and pay through your Self Assessment tax return by 31 January following the end of the tax year.

Late Reporting Penalties: If you don't report a property sale within 60 days, you may face a penalty of £100 initially, plus interest on the tax owed. Repeated late filing can result in higher penalties.

Frequently Asked Questions

What is the CGT Annual Exempt Amount for 2025/26?

The Annual Exempt Amount for 2025/26 is £3,000 per person (reduced from £6,000 in 2023/24). This means you only pay CGT on gains above this threshold. Married couples and civil partners each have their own allowance, so together can realise £6,000 of gains tax-free.

Do I pay CGT on my main home?

No, your main residence is usually exempt from CGT due to Private Residence Relief. However, you may owe some CGT if: you've let out all or part of it, used part exclusively for business, the grounds exceed 5,000 square metres, or you had a different main home for part of ownership. The last 9 months of ownership are always exempt if it was your main home at some point.

How do I calculate CGT on inherited property?

When you inherit property, your base cost for CGT purposes is the probate value (market value at date of death), not what the deceased originally paid. You pay CGT on the gain between this probate value and the sale price, minus allowable costs. Inheritance Tax and CGT are separate — paying one doesn't exempt you from the other.

Can I offset capital losses against gains?

Yes, capital losses can offset capital gains in the same tax year. If your losses exceed your gains, the excess can be carried forward to future years indefinitely. You must report losses within 4 years of the end of the tax year to carry them forward. Losses are deducted before applying the Annual Exempt Amount.

Is cryptocurrency subject to CGT?

Yes, HMRC treats cryptocurrency as an asset for CGT purposes. You pay CGT when you: sell crypto for fiat currency (GBP), exchange one crypto for another, use crypto to pay for goods/services, or gift crypto. The rates are 10% (basic rate) or 20% (higher rate), same as shares. Keep detailed records of all transactions.

What if my gains push me into a higher tax band?

Your capital gains are added on top of your regular income. If this pushes you from basic rate into higher rate, part of your gain may be taxed at the basic rate and part at the higher rate. This is called 'band stretching'. The calculator assumes your entire gain falls within your stated band — for more complex situations, consult a tax advisor.

How quickly must I report and pay CGT on property?

You must report and pay CGT on UK residential property within 60 days of the completion date using HMRC's online service. For other assets (shares, crypto, etc.), you report and pay through your Self Assessment tax return by 31 January after the tax year ends. Missing the 60-day deadline for property can result in penalties and interest.

Can I give property to my children tax-free?

No, gifts of property are treated as disposals at market value for CGT purposes. You would owe CGT on the gain as if you'd sold at market value (even though you received no money). However, if you gift your main home, Private Residence Relief may cover part or all of the gain. Gifts to spouses/civil partners are tax-free.

JW

Reviewed by James Williams, CTA

Chartered Tax Adviser, ADIT (Advanced Diploma in International Taxation)

James is a Chartered Tax Adviser with over 15 years of experience in UK personal and property taxation. He specialises in CGT planning for landlords and investors, and regularly advises on complex disposal scenarios.

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Last updated: February 2026 | Verified with latest UK rates

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People Also Ask

You must file a Self Assessment tax return if you're self-employed earning over £1,000, have income over £100,000, earn untaxed income like rental or investment income, or are a company director. Deadline is 31 January for online filing.

Most employees are on 1257L for 2024/25, reflecting the £12,570 personal allowance. If you have multiple jobs, secondary employment uses BR (basic rate) code. Check your code on payslips or via HMRC online.

Maximise pension contributions (reduces taxable income), use your ISA allowance (tax-free savings), claim work-from-home relief if eligible, make gift aid donations, and ensure you're using all available allowances.