Capital Gains Tax Calculator 2026/27

Calculate your Capital Gains Tax on property sales, shares, and other assets for the 2026/27 tax year. Enter your gain and income details below to see how much CGT you owe.

Your Details

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Helps determine your tax band

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Asset type

How to use

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About This Calculator

The Capital Gains Tax Calculator helps you estimate how much CGT you may owe when you sell or dispose of an asset such as a second property, shares, or a business asset. It uses the 2026/27 UK tax year rates and takes your income into account to determine which tax bands apply to your gain.

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How to Use the Calculator

Step 1

Enter Your Total Capital Gain

Enter the profit you made from selling or disposing of the asset. This is the sale price minus the original purchase price, any allowable costs (such as solicitor fees, stamp duty, or improvement costs).

Step 2

Enter Your Annual Income (Optional)

Entering your annual salary or income helps the calculator determine how much of your gain falls within the basic rate band and how much is taxed at the higher rate. If you leave this blank, we assume all gains are taxed at the higher rate.

Step 3

Select the Asset Type

Choose the type of asset you are disposing of. Different rates apply to residential property, shares/other assets, and business assets qualifying for BADR.

Step 4

Calculate and View Results

Click the "Calculate" button to see your results. The calculator will show:

  • Taxable Gain: Your gain after the annual exempt amount
  • Tax Breakdown: How much is taxed at each rate band
  • Total CGT: The total Capital Gains Tax you owe
  • Effective Tax Rate: Your overall CGT rate as a percentage of total gain
  • Net Gain: What you keep after tax

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CGT Rates 2026/27

Asset TypeBasic RateHigher Rate
Residential Property18%24%
Shares & Other Assets18%24%
Business Asset (BADR)18% flat rate (lifetime limit: £1,000,000)

Note: The BADR rate was 14% in 2025/26 and rose to 18% from April 2026.

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Annual Exempt Amount

Every individual has a Capital Gains Tax annual exempt amount (sometimes called the "annual allowance"). For 2026/27 this is £3,000. This means the first £3,000 of your total taxable gains in a tax year is completely tax-free.

The annual exempt amount was significantly reduced in recent years:

  • 2022/23: £12,300
  • 2023/24: £6,000
  • 2024/25 onwards: £3,000

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How CGT Interacts with Income Tax Bands

The rate of CGT you pay depends on your total taxable income and where your gains sit within the income tax bands.

The Calculation

  • The personal allowance for 2026/27 is £12,570
  • The basic rate band is £37,700 (income from £12,571 to £50,270)
  • Your taxable income = your annual income minus the personal allowance
  • Remaining basic rate band = £37,700 minus your taxable income
  • Any capital gain that fits within the remaining basic rate band is taxed at the basic rate
  • Any gain above the remaining basic rate band is taxed at the higher rate

Example

If your annual income is £40,000, your taxable income is £27,430 (£40,000 - £12,570). Your remaining basic rate band is £10,270 (£ 37,700 - £27,430). If you have a taxable capital gain of £20,000, the first £10,270 would be taxed at the basic rate and the remaining £9,730 at the higher rate.

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Private Residence Relief

You do not usually need to pay Capital Gains Tax when you sell your main home, thanks to Private Residence Relief (PRR). This exemption applies automatically if the property has been your only or main residence for the entire time you owned it.

However, you may have to pay some CGT if:

  • You let out all or part of the property (excluding lodgers under the Rent a Room scheme)
  • You used part of the property exclusively for business purposes
  • The grounds, including buildings, are larger than 5,000 square metres (about 1.2 acres)
  • You bought the property mainly to make a profit

If you own more than one property, you can nominate which one is your main residence for CGT purposes. The last 9 months of ownership are always exempt, even if you no longer live there.

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Business Asset Disposal Relief (BADR)

Business Asset Disposal Relief (formerly known as Entrepreneurs' Relief) allows qualifying business owners to pay a reduced rate of Capital Gains Tax when they sell all or part of their business.

Key Details for 2026/27

  • Rate: 18% on qualifying gains
  • Lifetime limit: £1,000,000 of qualifying gains
  • The annual exempt amount (£3,000) is deducted before BADR applies

Qualifying Conditions

To qualify for BADR, you must generally:

  • Be a sole trader or business partner disposing of all or part of the business, or
  • Own at least 5% of the shares and voting rights in a trading company, and be an officer or employee
  • Have owned the business or shares for at least 2 years before disposal

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Disclaimer

This calculator provides estimates based on the 2026/27 UK tax year rules. Please note the following:

  • Estimates only: Results are for guidance and should not be treated as financial advice.
  • Simplified calculation: This calculator does not account for all possible reliefs, exemptions, or losses carried forward from previous years.
  • Scottish taxpayers: CGT rates are the same for Scottish taxpayers as the rest of the UK (CGT is not devolved).
  • Reporting requirements: You must report and pay CGT on UK residential property within 60 days of completion.

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