CGT rates at a glance - 2026/27
| Tax Band | Other Assets | Residential Property |
|---|---|---|
| Basic rate (up to £50,270) | 18% | 18% |
| Higher rate (£50,271 - £125,140) | 24% | 24% |
| Additional rate (over £125,140) | 24% | 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
Start with the difference between what you paid for the asset and what you sold it for.
Step 2: deduct allowable costs
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
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 your income tax band. Basic rate taxpayers pay 18% and higher and additional rate taxpayers pay 24%, whether the asset is residential property or something else such as shares.
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). In CGT terms, add your taxable income (after the Personal Allowance) to your taxable gains (after the £3,000 allowance) and compare the total with the £37,700 basic rate band: the part of the gains inside the band is taxed at 18%, and the part above it at 24%.
Worked examples for 2026/27
Each example was run through the calculator above with the inputs shown, leaving the tax band on auto. All three assume a full £12,570 personal allowance and income entered before tax, and that no losses are being carried forward.
Shares outside an ISA, £40,000 salary
Shares bought for £10,000 are sold for £25,000, with £300 of dealing costs. The gain after costs and the £3,000 allowance is £11,700. A £40,000 salary leaves £10,270 of the basic rate band unused, so that slice of the gain is taxed at 18% and the rest at 24%. CGT due: £2,191.80.
Buy-to-let flat, £60,000 salary
A flat bought for £180,000 sells for £260,000. Purchase and sale fees plus a new kitchen come to £6,500. The taxable gain is £70,500 and, with income already above £50,270, all of it is taxed at 24%: £16,920.00. Because this is UK residential property, the return and payment are due within 60 days of completion, not at the next Self Assessment deadline.
Second sale in the same year, £25,000 income
An earlier sale this tax year produced a £1,000 gain, so only £2,000 of the allowance is left for a new £20,000 gain. The taxable £18,000 fits inside the basic rate band on top of £25,000 of income, so it is all taxed at 18%: £3,240.00.
Rules that change the answer
Your main home is usually exempt
Private Residence Relief removes the gain when you sell a home you have lived in as your only main home for the whole time you owned it, with grounds under 5,000 square metres, no part let out or used only for business, and you did not buy it just to make a gain. The 5,000 square metre limit includes all buildings on the land. If any of those fail, part of the gain can be taxable (GOV.UK: Tax when you sell your home, checked 30 October 2026).
Spouses, ISAs and tax-free assets
Gifts or sales to a husband, wife or civil partner you live with usually carry no CGT at the time; they take over your original cost. The exception is goods given to them for their business to sell on. Gains inside an ISA or PEP, on gilts, Premium Bonds and betting winnings are not taxed. Allowable losses from the same year are deducted before the £3,000 allowance (GOV.UK: Capital Gains Tax, checked 30 October 2026).
Selling a business
Business Asset Disposal Relief taxes qualifying gains at 18% from 6 April 2026, up from 14% in 2025/26 and 10% before that. For a basic rate taxpayer that is now the same as the normal rate, so the relief mainly helps higher rate taxpayers. This calculator does not apply it (GOV.UK: Business Asset Disposal Relief, checked 30 October 2026). Budget 2026 cuts the lifetime limit for the relief from £1,000,000 to £500,000 for disposals from 6 April 2027, and proposes a new Founders’ Relief for some share sales from the same date (HMRC: Budget 2026 overview of tax legislation, checked 30 October 2026).
When you must report
If you are UK resident and sell UK residential property with Capital Gains Tax to pay, you must report and pay within 60 days of completion (for sales since 27 October 2021). Non-residents must report every sale of UK property or land within 60 days, even when no tax is due. Other gains go on a Self Assessment return, or the real-time CGT service by 31 December after the tax year. If you file a return, you must report sales totalling more than £50,000 even when the gains are under the allowance.
Common mistakes
Using the full allowance twice. The £3,000 covers all your gains in the tax year, not each sale. Enter earlier gains in the “other gains” box, as in the third example.
Deducting repairs. Improvements that add to the value, such as an extension or new kitchen, count as costs. Redecorating and routine maintenance do not.
For more background on reliefs and record keeping, see our capital gains tax guide.
How this calculator works: it takes the sale price less the purchase price and your costs, deducts whatever is left of the £3,000 allowance after other gains, then taxes the result at 18% up to the top of the basic rate band (£50,270 of income) and 24% above it. Other gains above the £3,000 allowance are counted first against the basic rate band, so less of this gain is taxed at 18%. It does not apply losses, reliefs or Business Asset Disposal Relief. Rates were last checked against GOV.UK on 30 October 2026. Every source is listed on our methodology page.