Capital Gains Tax Calculator
Calculate your CGT liability on property or other assets. UK rates for 2026/27.
Total Gain
£30,000.00
Less allowable costs
− £1,500.00
Less annual exempt amount
− £3,000.00
Taxable Gain
£25,500.00
CGT Rate Applied
10%
Capital Gains Tax Due
£2,550.00
CGT Rates at a Glance - 2026/27
| Tax Band |
Other Assets |
Residential Property |
| Basic rate (up to £50,270) | 10% | 18% |
| Higher rate (£50,271 - £125,140) | 20% | 24% |
| Additional rate (over £125,140) | 20% | 24% |
| Annual exempt amount | £3,000 |
How Capital Gains Tax Works
Capital Gains Tax (CGT) is the tax you pay on the profit when you sell or dispose of an asset that has increased in value. You only pay CGT on the gain, not the total sale price.
Step 1: Calculate your gain
Sale Price - Purchase Price = Total Gain
Start with the difference between what you paid for the asset and what you sold it for.
Step 2: Deduct allowable costs
Total Gain - Costs = Net Gain
Subtract any allowable costs such as solicitor fees, estate agent fees, stamp duty on the original purchase, and the cost of improvements (but not general maintenance).
Step 3: Apply the annual exempt amount
Net Gain - £3,000 = Taxable Gain
For 2026/27, the annual exempt amount is £3,000 per person. If you have other capital gains in the same tax year, they share this single allowance.
Step 4: Apply the CGT rate
Your CGT rate depends on two things: the type of asset and your income tax band. Basic rate taxpayers pay 10% on most assets or 18% on residential property. Higher and additional rate taxpayers pay 20% or 24% respectively.
Which tax band am I in?
Your tax band for CGT purposes is based on your total taxable income. For 2026/27, the basic rate band covers income up to £50,270 (including the £12,570 personal allowance). If your taxable income plus your capital gains pushes you above this threshold, the portion of gains above the basic rate band is taxed at the higher rate.
Capital Gains Tax FAQs
What is the Capital Gains Tax annual exempt amount for 2026/27?
The CGT annual exempt amount for 2026/27 is £3,000 per person. This means the first £3,000 of capital gains in a tax year is tax-free. Any gains above this threshold are taxed at the applicable rate.
What are the CGT rates for 2026/27?
For 2026/27, basic rate taxpayers pay 10% on gains from most assets and 18% on residential property. Higher and additional rate taxpayers pay 20% on most assets and 24% on residential property.
How is Capital Gains Tax calculated on property?
CGT on residential property is calculated by taking the sale price, subtracting the purchase price and allowable costs (such as legal fees, estate agent fees, and improvement costs), then subtracting the annual exempt amount. The resulting taxable gain is taxed at 18% for basic rate taxpayers or 24% for higher rate taxpayers.
Can I deduct costs from my capital gain?
Yes. You can deduct allowable costs including solicitor and conveyancing fees, estate agent fees, stamp duty paid on purchase, costs of improvements (but not maintenance), and valuation fees. These costs reduce your overall gain before tax is calculated.
Do I pay CGT on my main home?
No. Your main residence (the home you live in) is usually exempt from CGT through Private Residence Relief. CGT on residential property typically applies to second homes, buy-to-let properties, and inherited properties that are not your main home.