UK Capital Gains Tax Calculator: Calculate Your CGT Liability Updated February 2026
Calculate Your Capital Gains Tax Instantly
See exactly how much CGT you will owe when selling assets. Includes property, shares, and business assets.
Use Calculator NowKey Takeaways
- Annual Exempt Amount: £3,000 for 2024-25 (reduced from £6,000 in 2023-24)
- Basic Rate: 10% on gains (18% for residential property)
- Higher Rate: 20% on gains (24% for residential property)
- Property Sales: Must report and pay within 60 days
- Loss Offsetting: Losses can be carried forward indefinitely
Capital Gains Tax (CGT) applies when you sell or dispose of an asset that has increased in value. Whether you are selling a second property, shares, cryptocurrency, or business assets, understanding your CGT liability helps you plan the timing of sales and maximize available reliefs. Our free UK Capital Gains Tax calculator helps you estimate how much tax you will owe on your gains.
With the annual exempt amount being reduced in recent years, more people are becoming liable for CGT on smaller gains. Understanding the current rates and planning disposals carefully can help minimize your tax bill.
What Is Capital Gains Tax?
Capital Gains Tax is a tax on the profit when you sell or dispose of an asset that has increased in value. It is the gain you make that is taxed, not the total amount of money you receive.
CGT Payable = Taxable Gain × Applicable Tax Rate
Allowable costs include purchase price, selling fees, improvements (not repairs), and stamp duty.
How Does Capital Gains Tax Work?
CGT works by taxing the profit you make when selling assets above the annual exempt amount. Your tax rate depends on your income tax band and the type of asset.
The Calculation Process
- Calculate Gross Gain: Sale price minus purchase price
- Deduct Allowable Costs: Selling fees, legal costs, improvement costs
- Deduct Annual Exempt Amount: £3,000 for 2024-25 tax year
- Apply Tax Rate: Based on your income tax band
- Pay Within Deadline: Property sales within 60 days, other assets by 31 January
How to Use Our Capital Gains Tax Calculator
Our calculator provides accurate CGT estimates for your asset sales:
- Select Asset Type: Property, shares, crypto, or business assets
- Enter Sale Price: Amount received from the sale
- Enter Purchase Price: Original cost of the asset
- Add Allowable Costs: Fees and improvements
- Input Your Income: To determine your tax band
- Calculate: See your gain and CGT due
Example Calculation
Scenario: You bought shares for £10,000, sold for £15,000, with £500 in selling fees. Basic rate taxpayer.
- Gross Gain: £15,000 - £10,000 = £5,000
- Minus Exempt Amount: £5,000 - £3,000 = £2,000
- CGT at 10%: £2,000 x 10% = £200
Your CGT liability would be £200.
Current CGT Rates & Allowances (2024-25)
| Income Tax Band | Non-Property Assets | Residential Property |
|---|---|---|
| Basic Rate (up to £50,270) | 10% | 18% |
| Higher Rate (above £50,270) | 20% | 24% |
The annual exempt amount is £3,000 for 2024-25, reduced from £6,000 in 2023-24 and £12,300 in 2022-23.
Important: Exempt Amount Reduction
The annual exempt amount was significantly reduced in recent tax years to raise revenue. Plan disposals carefully to maximize use of your allowance, as it cannot be carried forward.
Assets Subject to Capital Gains Tax
CGT applies to a wide range of assets:
Common Taxable Assets
- Second Homes: Properties not your main residence
- Buy-to-Let Properties: Investment rental properties
- Shares and Securities: Individual shares, bonds, gilts (excluding ISAs)
- Cryptocurrency: Bitcoin, Ethereum, and other digital assets
- Business Assets: Goodwill, business premises, equipment
- Personal Possessions: Worth £6,000 or more (jewellery, paintings, antiques)
- Unit Trusts: Life insurance policies
Exempt Assets
- Your Main Home: Usually exempt under Private Residence Relief
- ISAs: All gains within an ISA are tax-free
- UK Government Gilts: Certain government bonds are exempt
- Premium Bonds: National Savings & Investments products
- Personal Cars: Your personal vehicle is exempt
- Betting Winnings: Lottery and betting winnings are exempt
CGT Exemptions & Reliefs
Several reliefs can reduce or eliminate your CGT liability:
| Relief Type | Description |
|---|---|
| Private Residence Relief | Exempts your main home if you have lived in it |
| Business Asset Disposal Relief | Reduces CGT to 10% on qualifying business sales up to £1m lifetime limit |
| Investors' Relief | 10% rate for external investors up to £10m |
| Holdover Relief | Defer tax on gifts of business assets |
| Rollover Relief | Defer tax when reinvesting in business assets |
Capital Gains Tax on Property
Property has special CGT rules and higher tax rates:
Property Tax Rates
- Basic Rate: 18% (compared to 10% for other assets)
- Higher Rate: 24% (compared to 20% for other assets)
60-Day Payment Rule
For residential property sales, you must report and pay CGT within 60 days of completion. This is a much stricter deadline than the 31 January deadline for other assets.
Main Home Exemption
Your main home is generally exempt under Private Residence Relief if you have lived in it as your only or main home for the entire period of ownership. There are special rules for periods when you were away from home, and relief may be restricted if you have let the property or used it for business.
Capital Gains Tax on Shares & Investments
Investments outside tax-advantaged accounts are subject to CGT:
Types of Investment Gains
- Individual Shares: Shares in companies, unit trusts
- Bonds and Gilts: Some government bonds are exempt
- Funds: Unit trusts, OEICs, investment funds
- Derivatives: Options, futures, contracts for difference
Bed and Breakfast Shares
Same-day rules (formerly bed and breakfast) prevent short-term trading abuse. If you buy and sell shares in the same day, your gains and losses are calculated together.
Capital Gains Tax on Cryptocurrency
Cryptocurrency is treated as a taxable asset for CGT purposes:
How Crypto is Taxed
- Each Disposal: Every sale or exchange is a taxable event
- Swaps: Trading Bitcoin for Ethereum counts as a disposal
- Pool Valuation: Difficulty determining acquisition cost for multiple assets
- HMRC Guidance: Specific guidance exists for crypto taxation
Record Keeping for Cryptocurrency
Keep detailed records of every transaction including dates, amounts, exchange rates, and wallet addresses. HMRC may request this information if you are selected for enquiry.
Reporting and Paying Capital Gains Tax
CGT reporting deadlines depend on the type of asset sold:
| Asset Type | Reporting Deadline | Payment Method |
|---|---|---|
| Residential Property | Within 60 days of completion | HMRC real-time CGT service |
| All Other Assets | By 31 January following tax year | Self Assessment tax return |
Record Keeping Requirements
- Property: Keep records for 5 years after 31 January tax return deadline
- Other Assets: Keep records for at least 5 years
- Documentation: Purchase contracts, sale confirmations, improvement receipts
Capital Losses
Losses can be used to reduce your tax bill:
Offsetting Rules
- Same Year: Losses offset gains in the same tax year first
- Carry Forward: Unused losses can be carried forward indefinitely
- No Carry Back: Losses cannot be carried back to previous years
Claiming Losses
To claim losses, you must report them on your Self Assessment tax return. The losses are automatically set against your gains, reducing your overall tax liability.
The "60-Day" Property Trap
Unlike other assets, if you sell a UK residential property (that isn't your main home), you don't wait until your self-assessment deadline to pay. You must report the gain and pay the tax within 60 days of completion.
Late filing triggers an automatic £100 penalty, plus interest on the unpaid tax. If you're selling a buy-to-let or second home, ensure your solicitor or accountant is ready to file the return immediately after completion.
"Bed and ISA": The CGT Reset Hack
Since the annual exemption is now only £3,000, "harvesting" your gains is more important than ever. "Bed and ISA" involves selling shares in a taxable account to use your £3,000 allowance and immediately rebuying them inside an ISA.
The Win: You reset your purchase price (cost base) to the current market value without paying tax, and all future growth is sheltered from CGT forever within the ISA wrapper.
Improvements vs. Repairs: The Cost Rule
You can lower your tax bill by deducting "Allowable Costs," but HMRC is strict.
- Deductible: Capital improvements like an extension, a new conservatory, or installing central heating where none existed.
- Not Deductible: Maintenance and repairs like repainting, fixing a leaky roof, or replacing a broken boiler with a similar one.
Save every invoice for capital works; they are the most effective way to legally reduce your taxable gain when you eventually sell.
Crypto & The "Section 104 Pool"
HMRC does not let you pick which Bitcoin you sold. They use the Section 104 Pooling method. All your holdings of a specific coin are treated as a single "pool" with an average cost.
Every time you buy more, the average cost of the pool changes. When you sell, you use that average. This makes manual calculation nearly impossible for frequent traders. Our calculator helps simplify this by applying the pooling logic to your transactions.
Tax Planning Strategies
Smart planning can help reduce your CGT liability:
Timing Disposals
- Spread Gains Across Years: Use your annual exempt amount each tax year
- Married Couples: Transfer assets between spouses to use both allowances
- Income Management: Consider timing of sales relative to your income tax band
Maximizing Reliefs
- Business Asset Disposal Relief: Consider qualifying for 10% rate on business sales
- Investors' Relief: Available for external investors with substantial holdings
- EIS and SEIS: Tax-advantaged investments with specific reliefs
- VCT Investments: Venture Capital Trusts offer tax advantages
The "60-Day" Property Trap
If you sell a UK residential property that isn't your main home (e.g., a buy-to-let or holiday home), you don't wait for your end-of-year tax return to pay.
You must report the gain and pay the tax within 60 days of completion. If you miss this deadline, HMRC will issue an automatic penalty and start charging interest immediately. Our calculator helps you estimate this amount so you can set the cash aside from the sale proceeds.
"Bed and ISA": The Ultimate Shield
With the annual CGT allowance falling to just £3,000, many investors are using the "Bed and ISA" strategy.
You sell your shares (using up your £3,000 tax-free allowance) and then immediately rebuy them inside a Stocks & Shares ISA. Once inside the ISA, those shares are shielded from Capital Gains Tax and Dividend Tax forever. It is the most effective way to migrate a taxable portfolio into a tax-free wrapper over several years.
Maintenance vs. Improvement: The Receipt Rule
When selling property, you can deduct "Improvement" costs but not "Maintenance." This distinction is worth thousands.
Deductible: Adding a conservatory, a loft conversion, or a complete high-spec kitchen upgrade. These are "capital" improvements. Non-Deductible: Repainting, fixing a broken boiler, or replacing a cracked window. Keep every receipt for structural work; a lost £10,000 receipt for a new roof could cost you £2,400 in extra tax at the higher rate.
Crypto "Wash Trading" and the 30-Day Rule
Thinking of selling your Bitcoin at a loss to offset other gains and immediately rebuying it? HMRC says no.
The UK has strict "Matching Rules." If you rebuy the same crypto within 30 days, the loss is attached to the new purchase rather than being "realized" for tax purposes. To harvest a loss legally, you must wait at least 31 days before rebuying, or buy a different (but correlated) asset instead. Our calculator tracks these gains, but consult a pro for "share pool" accounting.
Frequently Asked Questions About Capital Gains Tax
The annual exempt amount is £3,000 for 2024-25. This has been reduced significantly from £12,300 in 2022-23 to £6,000 in 2023-24. The allowance cannot be carried forward if unused.
Basic rate taxpayers (income up to £50,270) pay 10% on non-property gains and 18% on residential property gains. Higher rate taxpayers (income above £50,270) pay 20% on non-property gains and 24% on residential property gains.
Generally no - your main home is exempt under Private Residence Relief. To qualify, you must have lived in the property as your only home or main residence for the entire period of ownership. There are special rules for periods when you were away, and relief may be restricted if you let the property or used it for business.
For residential property, you must report and pay CGT within 60 days of completion using HMRC's real-time capital gains service. For all other assets, you report on your Self Assessment tax return by 31 January following the tax year.
Ways to potentially reduce CGT include: (1) Use your annual allowance - £3,000 for 2024-25; (2) Offset losses against gains - losses can be carried forward indefinitely; (3) Transfer assets to spouse - allows use of both allowances; (4) Time disposals across tax years - use allowance each year; and (5) Claim available reliefs such as Business Asset Disposal Relief.
Yes, cryptocurrency is subject to CGT on each disposal including swaps between cryptocurrencies. Each sale or trade is a taxable event. Crypto gains are taxed at the same rates as other non-property assets (10% or 20% depending on your income tax band).
Yes, losses offset gains in the same year and can be carried forward indefinitely. To claim losses, you must report them on your Self Assessment tax return. The losses are automatically set against your gains first, reducing your overall tax liability.
Business Asset Disposal Relief reduces CGT to 10% on qualifying business disposals up to a £1m lifetime limit. To qualify, you must be a sole trader or business partner, own the business for at least 2 years, and be aged 55 or over (or meet disability criteria).
Yes, all gains within an ISA are completely tax-free. This includes interest, dividends, and capital gains from investments held within an ISA wrapper. There is no limit on tax-free gains from ISAs.
Yes, transfers between spouses are at no gain/no loss, allowing use of both annual allowances. This is a valuable planning strategy as it effectively doubles your exempt amount to £6,000 per couple for 2024-25.
For property sales, keep records for 5 years after the 31 January tax return deadline. For other assets, keep records for at least 5 years. Records should include purchase contracts, sale confirmations, improvement receipts, and any documentation supporting your costs.
Non-residents pay CGT on UK residential property and certain commercial property. The rules for non-residents are complex, and different rates may apply depending on your circumstances. Consult HMRC guidance or a tax advisor for specific advice.
The 60-day rule applies to residential property sales. You must report and pay CGT within 60 days of completion. This is a much stricter deadline than the 31 January deadline for other assets. Use HMRC's real-time capital gains service to report on time.
Yes, the annual exempt amount has been reduced significantly in recent years: £12,300 in 2022-23, £6,000 in 2023-24, and £3,000 in 2024-25. The allowance cannot be carried forward if unused.
Inheriting an asset is not taxable - CGT applies when you sell the inherited asset. The gain is calculated based on the value at the time of death (or the probate value), not the original purchase price. This base value rule is beneficial compared to assets you purchased yourself.
Trusted Resources for Capital Gains Tax Information
For official information about Capital Gains Tax in the UK:
- GOV.UK - Capital Gains Tax - Official HMRC guidance
- HMRC - CGT Rates and Allowances - Current rates and exempt amounts
- HMRC - Reporting and Paying CGT - How to report your gains
- HMRC - Calculating Your Gain - How to work out your taxable gain
Created by: CalculatorZone Financial Team
Content Reviewed: February 2025
Last Updated: February 21, 2026
Methodology: This calculator uses Capital Gains Tax rates and annual exempt amounts published by HMRC for the 2024-25 tax year. Different rates apply to residential property vs other assets.
This calculator provides estimates for educational purposes only. CGT rules, reliefs, and allowances are subject to change. Always verify current rates with HMRC or a qualified tax advisor before making financial decisions.
Capital Gains Tax Around the World
Capital gains tax systems vary significantly between countries. Understanding international approaches helps UK investors and expatriates plan effectively.
| Country | CGT Rate | Annual Allowance | Main Home Exempt? |
|---|---|---|---|
| United Kingdom | 10%/18% (basic), 20%/24% (higher) | £3,000 | Yes (Private Residence Relief) |
| United States | 0%, 15%, or 20% (long-term) | $250,000/$500,000 (home exclusion) | Yes (up to limits) |
| Canada | Marginal rate on 50% of gain | None (principal residence exempt) | Yes (Principal Residence) |
| Australia | Marginal rate (50% discount after 12 months) | None (main residence exempt) | Yes (Main Residence Exemption) |
| India | 12.5% (long-term), 20% (short-term) | ₹1.25 lakh long-term exemption | Partial (Section 54) |
The UK's tiered CGT rates based on income tax band and asset type make it relatively complex compared to flat-rate systems. The reduced annual exempt amount since 2023 has brought more investors into the CGT net.
Calculate Your Capital Gains Tax Now
Use our free Capital Gains Tax calculator to estimate how much tax you will owe on asset sales.
Calculate My CGT