Capital Gains Tax (CGT) Rates 2026/27 Calculator

Capital Gains Tax rates for 2026/27

CGT is charged on the gain above your tax-free annual exempt amount of £3,000. The rate depends on your Income Tax band, and the same rates apply to shares, other assets and residential property in 2026/27.

Estimate your bill with the capital gains tax calculator

Use the calculator at the top of this page: put in your total gain, the costs of buying and selling, any losses you can offset and your taxable income for the year. It returns an estimated CGT figure for 2026/27, splitting the gain across the 18% and 24% rates where it straddles the basic-rate band. Read on for the rules, three worked examples and the mistakes that catch people out.

How capital gains tax is worked out

Capital gains tax is charged on the profit you make when you dispose of an asset, not on the full amount you receive. "Disposal" covers selling, gifting, swapping or even getting compensation for something destroyed. The gain is the difference between what you sell for and what you originally paid, after deducting allowable costs.

The plain-English formula is:

Taxable gain = (sale price − purchase price − allowable costs) − losses − annual exempt amount

Allowable costs include things like estate agent and solicitor fees, stamp duty you paid when buying, and the cost of improvements (a new extension, not routine repairs). Once you have the net gain, you subtract the annual exempt amount (AEA) of £3,000 for 2026/27 - the slice everyone can realise tax-free each year.

What is left is taxed at one of two rates, and which one depends on your income. CGT stacks on top of your taxable income. The part of the gain that fits inside your remaining basic-rate band is taxed at 18%; anything above the basic-rate band is taxed at 24%. From 30 October 2024 these aligned rates apply to both residential property and other assets such as shares.

To find your remaining basic-rate band, take the basic-rate limit of £37,700 of taxable income and subtract the taxable income you have already used. So the rate split is:

• Basic-rate band remaining = £37,700 − (your income after the £12,570 Personal Allowance)
• Lower slice (up to that remaining band) is taxed at 18%
• Upper slice (the rest) is taxed at 24%

One point that surprises a lot of people: capital gains tax is a UK-wide tax and is not devolved to Scotland. Even though Scottish taxpayers have different income tax bands, CGT still uses the UK £37,700 basic-rate band to decide the 18%/24% split. If you also need to check your earnings under the Scottish system, our Scotland tax calculator handles the income side, while CGT remains the same wherever you live in the UK.

Worked example 1 - selling shares as a basic-rate taxpayer

Priya earns £30,000 a year and sells a share portfolio. She bought the shares for £8,000 and sold them for £20,000, giving a £12,000 gain with no other costs.

• Gain: £20,000 − £8,000 = £12,000
• Less the AEA: £12,000 − £3,000 = £9,000 taxable gain
• Income after Personal Allowance: £30,000 − £12,570 = £17,430
• Basic-rate band remaining: £37,700 − £17,430 = £20,270
• The whole £9,000 gain fits inside that band, so it is all taxed at 18%
• CGT = £9,000 × 18% = £1,620

Priya pays £1,620 and keeps the rest. If she had spread the sale across two tax years, a second £3,000 AEA could have wiped out more of the gain.

Worked example 2 - a higher-rate landlord selling a buy-to-let

Mark earns £60,000, which makes him a higher-rate taxpayer. He sells a rental flat he bought for £180,000 for £250,000, paying £5,000 in agent and legal fees.

• Gross gain: £250,000 − £180,000 = £70,000
• Less allowable costs: £70,000 − £5,000 = £65,000
• Less the AEA: £65,000 − £3,000 = £62,000 taxable gain
• Mark's income (£60,000) already exceeds £50,270, so he has £0 of basic-rate band left
• CGT = £62,000 × 24% = £14,880

Because this is residential property, Mark must also report and pay within 60 days of completion - far sooner than the normal Self Assessment deadline. Our capital gains tax on property calculator and the 60-day CGT reporting calculator walk through that specific process.

Worked example 3 - a gain that straddles the band

Sarah earns £40,000 and makes a £20,000 gain selling investment fund units.

• Less the AEA: £20,000 − £3,000 = £17,000 taxable gain
• Income after Personal Allowance: £40,000 − £12,570 = £27,430
• Basic-rate band remaining: £37,700 − £27,430 = £10,270
• Lower slice: £10,270 × 18% = £1,848.60
• Upper slice: (£17,000 − £10,270) = £6,730 × 24% = £1,615.20
• Total CGT = £3,463.80

This is the case the calculator handles automatically - the gain pushes Sarah from the basic into the higher band, so part is at 18% and part at 24%.

2026/27 CGT rates and allowances

Figures checked against the official guidance at gov.uk capital gains tax rates for the 2026/27 tax year. The same aligned 18%/24% rates apply to shares and residential property; Business Asset Disposal Relief gives a reduced 14% rate on qualifying business disposals up to a lifetime limit.

Ways to reduce a capital gains tax bill

There are several legitimate ways to bring a CGT bill down:

• Use your AEA every year. The £3,000 allowance cannot be carried forward, so realising gains in stages across tax years can use two or more allowances.
• Transfer assets to a spouse or civil partner. Transfers between spouses are normally tax-free, so a couple can use both AEAs and both basic-rate bands.
• Offset losses. Capital losses on other assets reduce your gains. Losses can be carried forward to future years if reported to HMRC, usually within four years.
• Shelter investments in an ISA. Gains inside an ISA are completely free of CGT - see our ISA calculator to see how much you could wrap up to the £20,000 limit.
• Pay into a pension. Pension contributions extend your basic-rate band, which can move more of a gain into the 18% rate rather than 24%.

Your main home is normally exempt under Private Residence Relief, so most people never pay CGT when they sell where they live. Selling a second home or a buy-to-let is different, and you can read more in the official gov.uk capital gains tax guide.

Common mistakes people make with CGT

• Forgetting the 60-day property deadline. Sell a UK residential property at a gain and you must report and pay within 60 days of completion, not by the following 31 January.
• Ignoring share matching rules. If you sell and rebuy the same shares, the "same day" and "30-day bed and breakfasting" rules decide which shares you actually sold. Our CGT share matching calculator untangles this.
• Missing crypto. Selling, swapping or spending cryptocurrency is a disposal for CGT. The crypto tax calculator applies the same pooling rules HMRC uses.
• Using the wrong rate. People assume a flat rate, but the 18%/24% split depends on income, so a gain can be taxed at both rates in the same year.
• Forgetting allowable costs. Buying costs, selling costs and capital improvements all reduce the gain - keep the paperwork.

If your gains and income interact in a complicated way, it can help to check your wider position with the income tax calculator first, so you know exactly how much basic-rate band is left for the 18% rate.

These figures are estimates for guidance only and are not personal tax or financial advice. Always confirm your position with HMRC or a qualified adviser before acting.

Related TaxFly calculators

Once you have your CGT figure, you may also want the dividend tax calculator for investment income and the inheritance tax calculator for estate planning, both updated for 2026/27.

Who should use this calculator

Use this when you have sold or are about to sell an asset at a profit — shares, a second property, a stake in a business — and need to know the tax before the money is spent. Capital Gains Tax has an unusual structure: the rate depends on your income, not just the size of the gain, because the gain sits on top of your income and is taxed at whichever band it lands in.

Residential property is taxed at higher rates than shares and other assets, which is why the asset type matters. The annual exempt amount is £3,000, and gains below that are free of tax — a figure that has fallen sharply in recent years, so disposals that used to fall under it often no longer do.

What this calculator assumes

• The gain is proceeds minus cost minus allowable buying and selling costs — legal fees, stamp duty paid on purchase, agent fees, and qualifying improvement works.
• The annual exempt amount of £3,000 is deducted before tax, and it cannot be carried forward if unused.
• Your gain is stacked on top of your taxable income, so the part falling within the basic-rate band is taxed at the lower rate and the rest at the higher rate.
• Rates are 18% and 24%, with residential property taxed on the same basis in the current year.
• Allowable losses are deducted from gains before the exempt amount is applied.

Limitations — what it does not cover

• Private Residence Relief, which normally removes the tax on your own home entirely and is the reason most house sales attract no CGT.
• Business Asset Disposal Relief and Investors’ Relief, which apply reduced rates to qualifying business disposals up to a lifetime limit.
• Share matching and pooling rules, including the same-day and 30-day rules that stop you crystallising a loss and buying straight back.
• The 60-day reporting deadline for UK residential property, which is separate from Self Assessment and carries penalties.
• Transfers between spouses and civil partners, which happen at no gain and no loss and are the simplest planning tool available.
• Losses brought forward from earlier years, and gains inside an ISA or pension, which are exempt.