What this calculator does

Takes disposal proceeds, cost basis, allowable costs, the taxpayer's income band, and asset type (residential property vs other assets). Returns the net gain, taxable gain after the annual exempt amount, and CGT due.

The formula

Net gain = Proceeds − Cost basis − Allowable costs
Taxable gain = max(0, Net gain − Annual Exempt Amount)

2025/26 Annual Exempt Amount: £3,000

Tax rates (2025/26):
  Other assets:           Basic rate 10%,  Higher/Additional rate 20%
  Residential property:   Basic rate 18%,  Higher/Additional rate 24%
  BADR (qualifying business disposals): 10% up to £1,000,000 lifetime limit

Where income + gains straddles the basic/higher rate boundary,
gains in the basic rate band pay the lower rate; the rest pay the higher rate.
Basic rate band upper limit: £50,270 (personal allowance £12,570 + £37,700)

Assumptions

  • UK resident for the full tax year.
  • No carried-forward losses applied.
  • No principal private residence (PPR) relief.
  • No entrepreneurs' relief complexities beyond Business Asset Disposal Relief (BADR).
  • Income figure entered is total taxable income before gains.

Data sources

Figure Value used Source Last checked
Annual Exempt Amount £3,000 HMRC — Capital Gains Tax allowances May 2026
Basic rate (other assets) 10% HMRC — Capital Gains Tax rates May 2026
Higher rate (other assets) 20% HMRC — Capital Gains Tax rates May 2026
Basic rate (residential) 18% HMRC — Capital Gains Tax rates May 2026
Higher rate (residential) 24% HMRC — Capital Gains Tax rates May 2026
BADR rate 10% HMRC — Business Asset Disposal Relief May 2026

Limitations

  • Does not model principal private residence (PPR) relief or letting relief.
  • Does not handle carried-forward losses.
  • Does not cover non-resident CGT.
  • The 60-day reporting window for residential property sales is not enforced by the calculator.

Worked example

Basic rate taxpayer sells shares for £25,000, cost basis £10,000, £200 dealing costs.

Net gain:     £25,000 − £10,000 − £200 = £14,800
Taxable gain: £14,800 − £3,000         = £11,800
CGT due:      £11,800 × 10%            = £1,180

Changelog

Date Change
May 2026 Initial publication

Use the Capital Gains Tax Calculator →