UK Capital Gains Tax Calculator

Capital Gains Tax (CGT) is charged on the profit when you sell an asset that has increased in value. You only pay CGT on the gain (the difference between what you paid and what you sold for), not on the total sale price. The first £3,000 of gains each year is tax-free (the Annual Exempt Amount).

CGT rates for 2025/26 are 18% (basic rate) and 24% (higher rate) for most assets. Your salary and other income determine which band your gains fall into. If you have unused basic rate band, gains use that up first at 18% before the 24% rate kicks in.

From April 2025, the same rates apply to residential property and other assets: 18% for basic rate taxpayers and 24% for higher rate taxpayers. Previously, residential property had higher rates of 18% and 28%, so the gap has narrowed.

Your main home (primary residence) is usually exempt from CGT under Private Residence Relief. CGT on property most commonly applies to second homes, buy-to-let properties, and inherited properties that you later sell. For shares, you can use your ISA allowance to shelter gains, and transfers between spouses are CGT-free.

If you sell all or part of a qualifying business, you may be able to claim Business Assets Relief. This charges CGT at a reduced rate of 14% (for 2025/26) instead of the normal 18% or 24%. There is a lifetime limit of £1,000,000 in qualifying gains.

To qualify, you typically need to have owned the business for at least 2 years, been involved in running it, and held at least 5% of the shares and voting rights. This relief was previously charged at 10% and is increasing to 14% from April 2025, with a further increase to 18% from April 2026.