Business & tax · UK
Capital Gains Tax Calculator
Work out the capital gains tax on a second home, buy-to-let or shares for the 2026/27 tax year. Add your gain and your other income to see the £3,000 exemption and how the 18% and 24% rates apply.
Gains on UK residential property must be reported and paid within 60 days of completion. Your main home is usually exempt. An estimate to help you plan, not tax advice.
How capital gains tax works in 2026/27
Capital gains tax (CGT) is the tax on the profit when you sell an asset that has gone up in value, such as a second property or shares held outside an ISA. You are taxed on the gain, the difference between what you paid and what you sold for, not on the whole amount you receive.
Everyone gets an annual exempt amount, £3,000 for 2026/27, which is the gain you can make each year tax-free. Above that, the gain is treated as the top slice of your income: your salary or pension fills the tax bands first, then the gain stacks on top.
- 18% on the part of the gain within your remaining basic-rate band.
- 24% on the part above it.
For 2026/27 these two rates apply to residential property and to other assets such as shares alike. Other-asset gains used to be taxed at lower rates (10% and 20%) but rose to match property, so the asset type no longer changes the rate. There is no additional rate for gains, so higher and additional-rate taxpayers both pay 24%.
Capital gains tax on property
Selling the home you live in is normally free of capital gains tax under Private Residence Relief, so this part of the calculator is for second homes and buy-to-let. On a taxable property gain you pay 18% within your remaining basic-rate band and 24% above it, after the £3,000 exemption. If you do owe CGT on UK residential property, you have to report it and pay within 60 days of completion through HMRC’s Capital Gains Tax on UK property service.
Capital gains tax on shares
Shares and funds held in a stocks and shares ISA or a pension are free of capital gains tax, so this covers holdings outside those wrappers. The rates are the same as for property: 18% within your basic-rate band and 24% above it, after the £3,000 exemption. Gains on shares and other assets are reported through Self Assessment after the tax year ends, rather than within 60 days.
Common questions
What is the capital gains tax threshold in the UK?
The annual exempt amount for 2026/27 is £3,000. Your first £3,000 of gains in the tax year is tax-free; you only pay capital gains tax on the gain above that.
What are the capital gains tax rates for 2026/27?
Above the £3,000 exemption, gains are taxed at 18% where they fall within your remaining basic-rate band and 24% above it. The same two rates apply to residential property and to other assets such as shares; there is no separate, higher property rate any more. There is no additional rate, so higher and additional-rate taxpayers both pay 24%.
What is the formula for calculating capital gains?
Take the sale proceeds, subtract what you paid for the asset and any allowable costs (buying and selling fees, and capital improvements for property). That is your gain. Subtract the £3,000 annual exempt amount, then tax what is left at 18% or 24% depending on your income.
How does my income affect the rate I pay?
Gains are treated as the top slice of your income. Your salary or pension fills the tax bands first; the gain then stacks on top. The part that still falls within the basic-rate band is taxed at 18%, and anything above it at 24%. So the same gain can cost more for a higher earner.
How can I reduce capital gains tax on a property sale in the UK?
Common, legitimate ways include: claiming Private Residence Relief if it was your main home, using both spouses’ annual exempt amounts by owning jointly, deducting all allowable costs and improvements, and offsetting losses on other assets. Selling across two tax years uses two annual exemptions. This is general information, not advice. Check your position with HMRC or an accountant.
What is the 6-year rule on capital gains tax?
It is a Private Residence Relief rule: a period when you did not live in a home you once lived in can still qualify for relief in some circumstances, such as time working away. The UK rules are specific (the final 9 months of ownership are usually covered automatically), so check the gov.uk Private Residence Relief guidance or an accountant for your situation.
When do I have to pay capital gains tax?
For UK residential property you must report and pay within 60 days of completion using a Capital Gains Tax on UK property account. For other assets, you report through Self Assessment after the tax year ends. This calculator works out the estimate; it does not file anything for you.
How much capital gains tax do you pay on property?
You pay nothing on the first £3,000 of gains in 2026/27. Above that, the gain on a second home or buy-to-let is taxed at 18% where it falls within your remaining basic-rate band and 24% above it. Selling your main home is normally exempt under Private Residence Relief.
How much tax do I pay if I sell my shares?
Shares and funds held in an ISA or pension are free of capital gains tax. On holdings outside those wrappers, you pay nothing on the first £3,000 of gains in 2026/27, then 18% within your basic-rate band and 24% above it, the same rates as property.
About this calculator
Written by the calcd team. We checked the 18% and 24% rates, the £3,000 annual exempt amount and the way gains stack on top of your income against gov.uk (HMRC). The result is an estimate of your capital gains tax to help you plan, not tax advice. It does not account for reliefs, losses or your full circumstances, so for anything that affects a tax return, confirm it with HMRC or an accountant. Last updated June 2026.