UK Capital Gains Tax Calculator

Calculate Capital Gains Tax on property, shares, and investments for the 2024/25 tax year.

Calculate your UK Capital Gains Tax liability on property sales, share disposals, and other investments. Includes 2024/25 tax rates, annual allowance, and loss relief calculations.

Examples

Click on any example to load it into the calculator.

Property Sale with Full Relief

Property

Selling main residence with full private residence relief.

Disposal Proceeds: £350,000.00

Acquisition Cost: £200,000.00

Acquisition Date: 2010-05-15

Disposal Date: 2024-08-20

Annual Income: £35,000.00

Other Capital Gains: £0.00

Brought Forward Losses: £0.00

Current Year Losses: £0.00

Private Residence Relief: 100%

Letting Relief: £0.00

Share Disposal with Losses

Shares

Selling shares with brought forward losses to offset.

Disposal Proceeds: £15,000.00

Acquisition Cost: £12,000.00

Acquisition Date: 2018-03-10

Disposal Date: 2024-11-15

Annual Income: £55,000.00

Other Capital Gains: £2,000.00

Brought Forward Losses: £3,000.00

Current Year Losses: £500.00

Private Residence Relief: 0%

Letting Relief: £0.00

Investment Property Sale

Investment Property

Selling a buy-to-let property with partial relief.

Disposal Proceeds: £280,000.00

Acquisition Cost: £180,000.00

Acquisition Date: 2012-09-20

Disposal Date: 2024-07-10

Annual Income: £42,000.00

Other Capital Gains: £5,000.00

Brought Forward Losses: £0.00

Current Year Losses: £0.00

Private Residence Relief: 0%

Letting Relief: £0.00

Mixed Relief Scenario

Mixed

Property with partial private residence and letting relief.

Disposal Proceeds: £400,000.00

Acquisition Cost: £250,000.00

Acquisition Date: 2015-01-10

Disposal Date: 2024-10-05

Annual Income: £48,000.00

Other Capital Gains: £3,000.00

Brought Forward Losses: £1,500.00

Current Year Losses: £0.00

Private Residence Relief: 80%

Letting Relief: £25,000.00

Other Titles
Understanding UK Capital Gains Tax Calculator: A Comprehensive Guide
Master UK Capital Gains Tax calculations. Learn how to calculate, minimize, and plan for CGT on property, shares, and investments.

What is UK Capital Gains Tax?

  • Definition and Scope
  • Taxable Assets
  • Exemptions and Reliefs
UK Capital Gains Tax (CGT) is a tax on the profit you make when you sell or dispose of an asset that has increased in value. It applies to various assets including property, shares, investments, and personal possessions worth over £6,000.
What Assets Are Subject to CGT?
CGT applies to most assets including: residential and commercial property, shares and securities, business assets, personal possessions worth over £6,000, and cryptocurrency. However, your main residence is usually exempt through Private Residence Relief.
Key Exemptions and Reliefs
Important exemptions include: Private Residence Relief for your main home, annual tax-free allowance (£6,000 for 2024/25), ISAs and pensions, gifts to spouses, and certain business assets. Understanding these can significantly reduce your tax liability.

Common CGT Scenarios:

  • Property sales (excluding main residence)
  • Share and investment disposals
  • Business asset sales
  • Inheritance and gift disposals

Step-by-Step Guide to Using the CGT Calculator

  • Data Collection
  • Input Methodology
  • Result Interpretation
To accurately calculate your Capital Gains Tax, you need to gather comprehensive information about your asset disposal and financial situation. Follow these steps for reliable results.
1. Gather Your Asset Information
Collect details about the asset: disposal proceeds (sale price), acquisition cost (purchase price plus improvements), acquisition and disposal dates, and any reliefs that may apply such as Private Residence Relief or Letting Relief.
2. Determine Your Tax Position
Calculate your total annual income to determine which CGT rate applies. Remember that basic rate taxpayers pay 10% on gains, while higher rate taxpayers pay 20%. For residential property, rates are 18% and 28% respectively.
3. Consider Losses and Allowances
Include any capital losses from the current year or brought forward from previous years. These can be offset against your gains. Don't forget the annual tax-free allowance of £6,000 for 2024/25.

Calculation Process:

  • Calculate capital gain: Disposal proceeds minus acquisition cost
  • Apply reliefs and exemptions
  • Offset losses and use annual allowance
  • Apply appropriate tax rates

Real-World Applications of CGT Planning

  • Property Planning
  • Investment Strategy
  • Tax Efficiency
Effective CGT planning can save significant amounts of tax and improve your overall financial position. Understanding the rules and timing can help you make informed decisions about when and how to dispose of assets.
Property Investment Planning
For property investors, timing disposals across tax years can help maximize the use of annual allowances. Consider the impact of Private Residence Relief if you've lived in the property, and Letting Relief if you've rented it out.
Investment Portfolio Management
For share and investment disposals, consider using ISAs to shelter gains from CGT. Plan disposals to make full use of annual allowances and consider the timing of losses to maximize tax efficiency.
Business Asset Disposal
Business owners may qualify for Business Asset Disposal Relief (formerly Entrepreneurs' Relief) which reduces the CGT rate to 10% on qualifying disposals up to £1 million lifetime limit.

Planning Strategies:

  • Use annual allowances efficiently across tax years
  • Offset losses against gains strategically
  • Consider timing of disposals for optimal tax rates
  • Utilize available reliefs and exemptions

Common Misconceptions and Correct Methods

  • Myths Debunked
  • Correct Calculations
  • Best Practices
Many people have misconceptions about CGT that can lead to incorrect calculations or missed opportunities for tax savings. Understanding the correct rules is essential for accurate planning.
Myth: All Property Sales Are Taxable
Reality: Your main residence is usually exempt from CGT through Private Residence Relief. However, if you've rented it out or used it for business, you may only get partial relief. The relief applies to the period you lived there plus the last 9 months of ownership.
Myth: You Can't Offset Losses Against Gains
Reality: Capital losses can be offset against gains in the same tax year. Any unused losses can be carried forward to future years. This includes losses on shares, property, and other assets.
Myth: The Annual Allowance Is Per Asset
Reality: The annual CGT allowance (£6,000 for 2024/25) applies to your total gains across all assets in the tax year, not per individual asset. Plan disposals carefully to maximize its use.

Correct Understanding:

  • Private Residence Relief applies to periods of occupation
  • Losses can be carried forward indefinitely
  • Annual allowance is per person, not per asset
  • Different rates apply to residential property vs other assets

Mathematical Derivation and Examples

  • Calculation Formulas
  • Rate Determination
  • Relief Applications
Understanding the mathematical basis of CGT calculations helps ensure accuracy and enables better tax planning. The calculations involve several steps and considerations.
Basic CGT Calculation Formula
Capital Gain = Disposal Proceeds - Acquisition Cost - Allowable Costs. Taxable Gain = Capital Gain - Annual Allowance - Losses - Reliefs. The tax is then calculated at the appropriate rate based on your total income and the type of asset.
Rate Determination Logic
For 2024/25: Basic rate (10% for assets, 18% for residential property) applies if your total income plus gains is within the basic rate band. Higher rate (20% for assets, 28% for residential property) applies above this threshold.
Relief Calculations
Private Residence Relief is calculated based on the proportion of time the property was your main residence. Letting Relief is limited to £40,000 and applies to periods when you let out your main residence.

Calculation Examples:

  • Property gain: £100,000 with 50% PRR = £50,000 taxable
  • Share gain: £15,000 minus £6,000 allowance = £9,000 taxable
  • Mixed relief: £80,000 gain with 75% PRR + £20,000 letting relief