Capital Gains Tax Calculator 2026/27

Capital Gains Tax Calculator: How Much Tax on Your Profits?

When you sell an asset for more than you paid for it, the profit — known as a capital gain — may be subject to Capital Gains Tax (CGT). Whether you are selling a buy-to-let property, shares, cryptocurrency, or a valuable antique, this calculator works out exactly how much CGT you will owe HMRC.

What assets are subject to CGT?

CGT applies to most assets that increase in value, including property that is not your main home, shares and investments (outside an ISA), business assets, cryptocurrency, and personal possessions worth over £6,000. Your main home is usually exempt thanks to Private Residence Relief. Assets held in ISAs, premium bonds, and UK government gilts are also exempt.

How CGT is calculated

First, calculate your total gains for the tax year. Then subtract your annual exempt amount — for 2026/27 this is £3,000. If your total taxable gains are above this, you pay CGT at either the basic rate (10% on assets, 18% on property) or the higher rate (20% on assets, 24% on property), depending on your Income Tax band. Importantly, your capital gains are added to your income to determine which rate applies.

You can reduce your gain by deducting allowable costs such as estate agent fees, solicitor fees, stamp duty paid on purchase, and improvement costs (but not normal maintenance). Keeping detailed records of all purchase and sale costs is essential for an accurate calculation.

CGT Rates on Property for 2026/27

Tax Band	Income Range	CGT Rate (Property)
Basic Rate	Up to £37,700 taxable	18%
Higher Rate	£37,701 – £125,140	24%
Additional Rate	Over £125,140	24%

Annual Exempt Amount (AEA): Everyone gets £3,000 of tax-free gains per year (2026/27). If you don't use it, you lose it — it can't be carried forward.

Reporting deadline: You must report UK residential property sales and pay any CGT within 60 days of completion through HMRC's Real Time Capital Gains Tax Service.

Private Residence Relief (PRR) Explained

PRR exempts the gain on your main home from CGT. You get full relief for:

• All periods you actually lived in the property as your main residence
• The final 9 months of ownership (always tax-free, even if you weren't living there)
• Up to 3 years of absence for any reason (if you lived there before and after)
• Periods working abroad (unlimited if you lived there before and after)
• Up to 4 years working elsewhere in the UK (if lived there before and after)

PRR is calculated as: (qualifying months + 9) / total ownership months × total gain

Letting Relief

Letting Relief was heavily restricted from April 2020. It now only applies if:

• You shared occupancy with your tenant (lodger situation)
• You were in the same property at the same time

For most landlords who let out their former home while living elsewhere, Letting Relief no longer applies. Only Private Residence Relief and the Annual Exempt Amount reduce the taxable gain.

Frequently Asked Questions

Do I pay CGT on my main home?

No — if the property has been your only or main residence throughout ownership, full Private Residence Relief applies and no CGT is due. You only pay CGT if part of the gain is not covered by PRR (e.g., you let it out, used it as a second home, or it's a buy-to-let).

How do I avoid CGT on a second property?

You can't completely avoid it, but you can reduce it: use your £3,000 Annual Exempt Amount, transfer the property to your spouse (no CGT on transfers between spouses), time the sale across tax years to use two years' allowances, offset capital losses from other assets, and deduct all allowable costs (purchase costs, improvements, selling costs).

What costs can I deduct from my property gain?

Allowable: Estate agent fees, solicitor fees, stamp duty on purchase, survey costs, and capital improvements (extensions, new kitchens, bathrooms). Not allowable: Mortgage interest, maintenance/repairs, insurance, council tax, or decorating costs.

Sources & Methodology

• HMRC: Capital Gains Tax Overview
• HMRC: Tax When You Sell Property
• HMRC: CGT Rates and Annual Exempt Amount
• HMRC: CGT for Individuals Guidance

All calculations are verified against official HMRC thresholds and rates for the 2026/27 tax year. Figures are updated within 24 hours of any HMRC announcement. Calculations are for guidance only — consult a qualified accountant for personalised advice.

What You Should Do Next

• Use your annual exempt amount — The £3,000 CGT annual exempt amount is use-it-or-lose-it. Consider crystallising gains before 5 April each tax year.
• Offset losses against gains — Capital losses can be carried forward indefinitely. Report them on your tax return even if you have no gains to offset yet.
• Consider the 30-day reporting rule — Residential property sales must be reported and tax paid within 60 days of completion via the UK Property Account.
• Private Residence Relief planning — If you lived in the property as your main home at any point, PRR may reduce your CGT bill significantly. Our calculator factors this in.

Capital Gains Tax Examples for 2026/27

CGT applies when you sell an asset for more than you paid for it. Here are real-world scenarios showing how much tax you would pay.

Example 1: Selling a Buy-to-Let Property

• Purchase price (2015): £180,000
• Sale price (2026): £280,000
• Capital gain: £100,000
• Annual exempt amount: £3,000
• Taxable gain: £97,000
• CGT rate (higher rate on property): 24%
• CGT payable: £23,280

Ways to reduce this: Deduct estate agent fees (~£3,000), solicitor fees (~£1,000), and improvement costs (new kitchen £8,000, extension £15,000). With £27,000 in allowable costs, the gain drops to £73,000 and CGT falls to £16,800 — a saving of £6,480.

Example 2: Selling Shares

• Shares purchased: £20,000
• Shares sold: £45,000
• Capital gain: £25,000
• Annual exempt amount: £3,000
• Taxable gain: £22,000
• CGT rate (basic rate taxpayer): 10%
• CGT payable: £2,200

Tip: If you are a basic rate taxpayer and the gain pushes you into the higher rate band, only the portion above £50,270 is taxed at 20%. The rest stays at 10%.

Example 3: Cryptocurrency Profits

• Crypto purchased: £5,000
• Crypto sold: £18,000
• Capital gain: £13,000
• Annual exempt amount: £3,000
• Taxable gain: £10,000
• CGT rate: 10% (basic rate) or 20% (higher rate)
• CGT payable: £1,000 to £2,000

Important: Every crypto-to-crypto trade is a taxable event, not just cashing out to GBP. If you traded BTC for ETH and made a gain, that gain is taxable even though you never withdrew to your bank account.

Example 4: Selling Your Main Home (No CGT)

• Purchase price: £250,000
• Sale price: £450,000
• Capital gain: £200,000
• CGT payable: £0 (Private Residence Relief applies)

If the property was your only or main home for the entire ownership period, you pay zero Capital Gains Tax thanks to Private Residence Relief. This applies even for gains of £500,000 or more.

CGT Reliefs and How to Claim Them

Private Residence Relief

Full relief when you sell your main home. No limit on the gain. If you lived in the property for only part of the ownership period, you get relief for the time you lived there plus the final 9 months of ownership automatically.

Example: You owned a property for 10 years, lived in it for 6 years, and let it out for 4 years. You get full relief for 6 years + 9 months (final period) = 6.75 years out of 10 = 67.5% relief on the gain.

Business Asset Disposal Relief (formerly Entrepreneurs' Relief)

If you sell all or part of your business, you pay just 10% CGT on qualifying gains up to a lifetime limit of £1 million. Requirements: you must have owned the business for at least 2 years and be a sole trader or partner (or hold at least 5% of shares in a limited company).

Investors' Relief

Similar to Business Asset Disposal Relief but for external investors in unlisted trading companies. 10% CGT rate on qualifying gains, with a £10 million lifetime limit. Shares must be held for at least 3 years.

Gift Hold-Over Relief

When you give away a business asset or sell it for less than market value, you can "hold over" the gain so the recipient pays CGT when they eventually sell it. Useful for passing business assets to family members.

Rollover Relief

If you sell a business asset and buy a replacement within 3 years, you can defer paying CGT until you sell the replacement asset. The new asset must be used for business purposes.

How to Reduce Your CGT Bill Legally

1. Use Your Annual Exempt Amount Every Year

The £3,000 annual exempt amount cannot be carried forward. If you have unrealised gains, consider crystallising up to £3,000 each tax year to use the allowance. For a married couple, that is £6,000 per year tax-free.

2. Transfer Assets to Your Spouse

Transferring assets to your spouse or civil partner is tax-free (no CGT on the transfer). They can then use their own £3,000 annual exempt amount when selling. A married couple effectively gets £6,000 of tax-free gains per year.

3. Offset Capital Losses

If you have made losses on other assets, you can offset them against gains. Losses can be carried forward indefinitely. Report losses on your tax return even if you have no gains — this preserves them for future use.

4. Invest in an ISA

Gains made within an ISA are completely tax-free. You can invest up to £20,000 per year in a Stocks & Shares ISA. Over time, this shelter can save thousands in CGT.

5. Time Your Sale Across Tax Years

If you have a large gain, consider spreading the sale across two tax years to use two annual exempt amounts. For example, sell half the shares in March and half in April to use both years' £3,000 allowances.