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Capital gains tax calculator

Quickly calculate how much Capital Gains Tax you may owe on profits from investments and property.
Today

Your tax situation

Source of profit
Total profit
Annual income
Date received
Calculations

Tax and profit

Your profit
£13,000.00
Minus tax-free allowance
-£3,000.00
Taxable profits
£10,000.00
Taxable at lower rate (18%)
£4,270.00
Taxable at higher rate (24%)
£5,730.00
Basic rate tax due
£768.60
Higher rate tax due
£1,375.20
Total CGT due
£2,143.80

£2,143.80

Capital Gains Tax Due
£10,856.20
Profit after tax
This calculator assumes that none of your capital gains tax allowance has already been used, and no previous year losses are being claimed. The output is based entirely on what is entered - if you have not correctly calculated gains based on source, original purchase price, and allowable exemptions, this will impact the accuracy of the calculation.
Capital Gains Tax (CGT) in the UK is payable when you sell certain assets which have gained in value since you bought or acquired them. You’ll need to self report and manage your own CGT in most cases - so understanding how to calculate capital gains is crucial.
This calculator could make the job a whole lot easier, allowing you to enter the gains you’ve made, and your income information, to see the different allowances and tax treatments that are likely. Read on for all you need to know about calculating capital gains for UK assets.

How to use the Capital Gains Tax Calculator

Let’s start with our Capital Gains Tax Calculator - a handy tool to give an idea of the tax you may need to pay when you dispose of assets in the UK.
Here’s how to use the Capital Gains Tax Calculator:
  1. Select the source of your gains from the dropdown list: investment, property or other
  2. Enter your total profit on the assets you’ve disposed of
  3. Enter your annual income from all sources - including salary, rental income, interest, and so on
  4. Select the date you received these gains, from the dropdown options
You’ll be shown the total CGT you’re likely to owe based on the information you’ve entered, split into tax due at basic rate, and tax due at higher rate, if applicable.
Bear in mind that this Capital Gains Tax Calculator is for information only. If you’re ever unsure about what gains you need to report or what CGT you need to pay, call HMRC or find a professional tax adviser who can give you personal advice.

What exactly is Capital Gains Tax (CGT)?

The UK government Capital Gains Tax is a tax you pay on the profits made when you dispose of (sell, give away or swap) certain assets.
The amount you’re taxed on is the profit, not the full value of the asset you've sold or otherwise disposed of. So, if you bought shares at a total price of £10,000, which have risen to a value of £25,000 when you sell, CGT can only apply on the difference - £15,000 of profit.
The good news is that there are some allowances for CGT, and some assets are exempt. Plus, you don’t normally pay CGT on assets you give to a spouse or civil partner, or to a charity.
The amount of tax you pay on capital gains depends on your overall earnings. You won’t get a CGT bill - instead you need to report your gains yourself to HMRC. We’ll cover how this all works in a little more detail in a moment.

When does capital gains tax apply?

Capital Gains Tax applies in the UK when you dispose of assets including:
  • Most personal possessions worth £6,000 or more (apart from your car)
  • Second properties or a buy to let property 
  • Your main home if it’s let out, very large, or used for your business
  • Shares not in an ISA or pension
  • Business assets
Personal possessions include things like jewelry, artworks, antique furniture - and more or less any other high value item you may own.

Do I have to pay CGT when I sell my home?

In most cases you don’t need to worry about CGT when you sell your home, assuming you’re living in it as your main residence, and it’s not used for business purposes. The key exceptions here are if the property is very large - an acre or more including all land and buildings - and if you bought it purely to profit from it.

How do I calculate capital gain?

To make sure you comply with the law, you’ll need to work out what you need to pay. Our Capital Gains Tax Calculator can help here. To give you a step by step idea of the process if you’d rather work out what you owe manually, here’s the basic process:
  1. Work out the total profit you’ve made from all relevant assets - you’ll need to do this separately for each asset type if you’ve profited from different asset disposals in one year. HMRC offers lots of guidance here:
  2. Add together the total gains, and deduct any relevant losses or costs
  3. Report your gains where relevant, and pay any tax that’s due
If your total gains are lower than the tax free allowance you won’t need to pay any CGT. However, you may still need to report your gains to HMRC, depending on the specific situation.

How much tax do I pay on my capital gains?

The Capital Gains Tax rates from 30 October 2024 are as follows:
  • Basic rate of income tax: CGT is 18%
  • Higher rate of income tax: CGT is 24%
Different rates apply if you’re reporting a gain from prior to this date - and the rules may well change in future, too. Do check up the most recent information on the HMRC website if you’re unsure, or take professional advice from a tax advisor.

What capital gains are exempt from tax?

There are some Capital Gains Tax allowances you’ll want to know about. In the current tax year, the CGT tax-free allowance is £3,000 for individuals, and £1,500 for trusts.
There are also some common exemptions, as we’ve already seen. This means you won’t normally pay CGT on:
  • Sale of your residential property
  • Gifts you give to a spouse or civil partner, or to a charity
  • Interest and dividend income from Individual Savings Accounts (ISAs) or pension schemes
  • Betting, lottery and pools wins
  • Wins from Premium Bonds, and profit from UK government gilt sales 

How do I report and pay Capital Gains Tax?

You won’t get an automatic bill for your CGT - instead, you’ll need to report and pay Capital Gains Tax yourself.
  • If you sell a residential property, you must report this within 60 days
  • For all other gains you can report the tax year after the gain through your self assessment form
Disclaimer
This article is written for educational purposes only and should in no way be taken as investment advice. When investing, your capital is at risk. Seek guidance if necessary.