🏛️ Capital Gains Tax UK Calculator
Calculate Capital Gains Tax (CGT) on UK property and assets
£3,000 for 2024-25 tax year
How to Use This Calculator
Enter Sale and Purchase Prices
Input the sale price and purchase price of the asset (property, shares, etc.).
Enter Costs
Input any costs associated with the purchase and sale (solicitor fees, estate agent fees, stamp duty, etc.).
Set Annual Allowance and Tax Band
Enter your annual CGT allowance (£3,000 for 2024-25) and select your tax band (basic or higher rate).
Review Results
See the capital gain, taxable gain after allowance, tax due, and net gain after tax.
Formula
Capital Gain = Sale Price - Purchase Price - Costs
Taxable Gain = Capital Gain - Annual Allowance
Tax Due = Taxable Gain × Tax Rate
Net Gain = Capital Gain - Tax Due
Example 1: Basic Rate Taxpayer
Sale Price: £200,000, Purchase Price: £150,000, Costs: £5,000
Capital Gain = £200,000 - £150,000 - £5,000 = £45,000
Taxable Gain = £45,000 - £3,000 = £42,000
Tax Due = £42,000 × 10% = £4,200
Net Gain = £45,000 - £4,200 = £40,800
Example 2: Higher Rate Taxpayer
Capital Gain: £50,000, Allowance: £3,000
Taxable Gain = £47,000
Tax Due = £47,000 × 20% = £9,400
About Capital Gains Tax UK Calculator
The Capital Gains Tax UK Calculator calculates Capital Gains Tax (CGT) on the sale of assets in the UK. CGT is a tax on the profit made when you sell an asset that has increased in value. This calculator helps UK taxpayers understand their CGT liability on property, shares, and other assets.
Capital Gains Tax applies to various assets including property (that is not your main residence), shares, business assets, and other investments. The tax is calculated on the gain (profit) made when selling the asset, after deducting the purchase price, allowable costs, and the annual CGT allowance. Different tax rates apply depending on your income tax band.
This calculator is essential for UK property sellers, investors, taxpayers, and anyone selling assets in the UK. It helps estimate CGT liability, plan for tax payments, understand tax obligations, and make informed decisions about asset sales.
When to Use This Calculator
- Property Sales: Calculate CGT on second homes, rental properties, or investment properties
- Share Sales: Estimate CGT on shares, stocks, and investments
- Asset Sales: Calculate CGT on business assets or other investments
- Tax Planning: Plan for CGT liability before selling assets
- Academic Study: Learn about UK Capital Gains Tax
- Financial Planning: Understand tax implications of asset sales
Why Use Our Calculator?
- ✅ Accurate Calculations: Uses UK CGT rates and allowances
- ✅ Comprehensive: Includes costs and annual allowance
- ✅ Educational: Helps understand UK CGT
- ✅ Easy to Use: Simple interface for quick calculations
- ✅ Free Tool: No registration or fees required
- ✅ Detailed Results: Shows gain, taxable amount, and tax due
Understanding UK Capital Gains Tax
Capital Gains Tax in the UK is charged on the profit made when selling assets. The annual CGT allowance (£3,000 for 2024-25) means you don't pay tax on gains up to this amount. Above this, basic rate taxpayers pay 10% (18% for residential property), while higher rate taxpayers pay 20% (28% for residential property).
Allowable costs that can be deducted include purchase costs, improvement costs, legal fees, estate agent fees, and other costs directly related to buying or selling the asset. Your main residence is usually exempt from CGT, but second homes and investment properties are subject to CGT.
Real-World Applications
Property Sales: When selling a second home or rental property, CGT applies to the gain. This calculator helps estimate the tax liability before selling, allowing for better financial planning and decision-making.
Investment Sales: When selling shares or other investments, CGT may apply. Understanding the tax implications helps investors make informed decisions about when and what to sell.
Tax Planning: By calculating CGT in advance, taxpayers can plan for tax payments, consider timing of sales to optimize tax, and ensure they set aside sufficient funds for tax obligations.
Important Considerations
- Annual CGT allowance is £3,000 for 2024-25 (may change each tax year)
- Main residence is usually exempt from CGT (Private Residence Relief)
- Different rates apply for residential property (18%/28%) vs other assets (10%/20%)
- Costs can be deducted to reduce the taxable gain
- CGT rates depend on your income tax band
- This calculator provides estimates - consult a tax advisor for accurate calculations
Frequently Asked Questions
What is Capital Gains Tax in the UK?
Capital Gains Tax (CGT) is a tax on the profit made when you sell an asset that has increased in value. It applies to property (except main residence), shares, business assets, and other investments. You pay CGT on gains above the annual allowance.
What is the annual CGT allowance?
The annual CGT allowance is £3,000 for the 2024-25 tax year. This means you don't pay tax on capital gains up to £3,000 per year. The allowance may change each tax year, so check the current rate.
What are the CGT rates?
For most assets: basic rate taxpayers pay 10%, higher rate taxpayers pay 20%. For residential property: basic rate taxpayers pay 18%, higher rate taxpayers pay 28%. Rates depend on your income tax band.
Is my main residence exempt from CGT?
Yes, your main residence is usually exempt from CGT under Private Residence Relief. However, second homes, rental properties, and investment properties are subject to CGT on the gain when sold.
What costs can I deduct?
You can deduct costs directly related to buying or selling the asset, including: purchase price, improvement costs, legal fees, estate agent fees, stamp duty, survey fees, and other transaction costs. Keep receipts for all allowable costs.
When do I pay CGT?
CGT is typically paid as part of your Self Assessment tax return, due by 31 January following the tax year in which the gain was made. For residential property, you may need to pay within 60 days of completion. Check HMRC guidelines for current requirements.