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Contractor Tool2026/27 tax year
Capital Gains Tax Calculator

Capital Gains Tax Calculator

Calculate CGT on shares, property, and business assets with current UK rates.

Compliance Alert: This calculator provides estimates. Consult a tax advisor for complex situations.

Asset Disposal Details

Legal fees, stamp duty, improvements

Determines if you pay basic or higher rate CGT

Enter your asset disposal details to calculate CGT

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Important Disclaimer

This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.

Overview

Capital Gains Tax (CGT) is charged on the profit — not the sale price — when you dispose of an asset that has increased in value: shares outside an ISA, investment property, business assets, and personal possessions worth over £6,000. Your main home is usually exempt under Private Residence Relief, and assets inside ISAs and pensions are outside CGT entirely. For 2026/27 the rates are 18% (basic rate) and 24% (higher rate) — from 6 April 2026 the rates on shares and other assets are aligned with residential property, so the same 18%/24% bands apply to all asset types. Business Asset Disposal Relief rises to 18%, completing its two-step climb from 10%. The annual exempt amount stays at just £3,000, down from £12,300 three years ago, which drags far more small disposals into the CGT net.

Worked Example (2026/27)

### Worked Example: Selling a Buy-to-Let in 2026/27

**Inputs**: higher-rate taxpayer sells a rental property for £280,000. It was bought for £220,000, with £10,000 of allowable costs (stamp duty, legal fees, improvements). No other disposals this year.

**Calculation**: 1. Gain: £280,000 − £220,000 − £10,000 = £50,000 2. Deduct the annual exempt amount: £50,000 − £3,000 = £47,000 taxable 3. Higher-rate residential CGT: £47,000 × 24% = **£11,280**

**Deadline**: because this is a UK residential property disposal, the gain must be reported and the CGT paid within **60 days of completion** using HMRC's CGT on UK property service — not on the following January's tax return. Late reporting brings a £100 fixed penalty plus interest.

**Variant — basic-rate taxpayer**: if the seller's income leaves part of the basic-rate band unused, that slice of the gain is taxed at 18% and only the remainder at 24%.

2026/27 Rates & Thresholds

Item2026/27 Value
Residential property — basic / higher rate18% / 24%
Shares and other assets — basic / higher rate18% / 24% (aligned with residential from 6 April 2026)
Business Asset Disposal Relief (BADR) rate18% (up from 14% in 2025/26)
BADR lifetime limit£1,000,000
Annual exempt amount — individuals£3,000
Annual exempt amount — most trusts£1,500
UK residential property reporting deadline60 days from completion
Other disposalsSelf Assessment, pay by 31 January

Business Asset Disposal Relief in 2026/27

BADR (formerly Entrepreneurs' Relief) gives a reduced CGT rate on qualifying business disposals up to a £1 million lifetime limit. The rate is 18% for disposals from 6 April 2026 — up from 14% in 2025/26 and 10% before that — so the relief is now worth at most 6 percentage points against the main higher rate. Qualifying conditions include holding at least 5% of shares and voting rights for at least 2 years and being an officer or employee of the company. If you are planning an exit, the date of disposal now materially changes the tax bill.

Using Losses

Capital losses must first be set against gains in the same tax year. Any excess carries forward indefinitely against future gains — but only if the loss is claimed to HMRC within 4 years of the end of the tax year it arose in. Brought-forward losses are applied after the annual exempt amount, so they aren't wasted covering gains the £3,000 exemption would have covered anyway.

Common Mistakes HMRC Penalises

  • Using the old 10%/20% rates for shares — from 6 April 2026 all assets are taxed at 18%/24%.
  • Missing the 60-day reporting deadline on residential property sales and assuming it can wait for Self Assessment.
  • Forgetting that the annual exempt amount is per person — jointly held assets let couples shelter £6,000 between them.
  • Not claiming losses within the 4-year window, permanently losing the carry-forward.
  • Ignoring allowable costs — purchase-side stamp duty, legal fees and capital improvements all reduce the gain.
  • Assuming your main home is always fully exempt — letting part of it or long absences can create a taxable slice.

When to Seek Professional Advice

Get professional advice for disposals involving BADR (the qualifying conditions are strict and errors are expensive), mixed-use or previously-let homes where Private Residence Relief only partly applies, transfers between spouses ahead of a sale, or non-UK residents disposing of UK property. If a disposal straddles your basic-rate band boundary, an adviser can also time income and pension contributions to keep more of the gain at 18%.

Frequently Asked Questions

What are the CGT rates for 2026/27?+

For disposals from 6 April 2026, Capital Gains Tax is 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers — the rates on shares and other assets are now aligned with residential property. Business Asset Disposal Relief rises to 18%, up from 14% in 2025/26. Rates apply to gains above the £3,000 annual exempt amount.

What is the CGT annual exempt amount for 2026/27?+

The annual exempt amount remains £3,000 for individuals and £1,500 for most trusts in 2026/27, down from £6,000 in 2023/24 and £12,300 before that. Each individual has their own allowance, so couples holding assets jointly can shelter £6,000 of gains between them.

What is Business Asset Disposal Relief (BADR)?+

BADR (formerly Entrepreneurs' Relief) provides a reduced CGT rate on qualifying business disposals up to a lifetime limit of £1 million. For 2026/27 the rate is 18%, up from 14% in 2025/26 and 10% before that. Qualifying conditions include owning at least 5% of shares and voting rights for at least 2 years and being an officer or employee of the company.

How do I report and pay CGT?+

For UK residential property disposals, you must report and pay CGT within 60 days of completion using HMRC's CGT on UK property service. For other assets, you report gains on your Self Assessment tax return, with payment due by 31 January following the end of the tax year. A voluntary real-time report can also be made at any time.

Can I offset losses against capital gains?+

Yes. Capital losses must be offset against gains in the same tax year first; any excess carries forward indefinitely against future gains. Losses must be claimed to HMRC within 4 years of the end of the tax year they arose in to remain available. Brought-forward losses apply after the annual exempt amount.

Does CGT apply when I sell my main home?+

Usually no — Private Residence Relief exempts your main home provided you have lived in it as your only or main residence throughout ownership, and the final 9 months of ownership are always exempt. Partial relief applies if you let part of the property or were absent for periods not covered by the deemed occupation rules.

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