CAPITAL GAIN TAX CALCULATOR UK 2026/27

What is Capital Gains Tax?

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 only to the gain, not the full amount you receive from the sale. For example, if you buy a picture for £5,000 and later sell it for £20,000, your taxable gain is £15,000 before any allowable deductions or reliefs are applied.

Some assets are exempt from CGT, and you only pay tax if your total gains for the tax year go above the annual exempt amount.

Capital Gains Tax Allowance for 2026/27

For the 2026/27 tax year, the annual exempt amount remains £3,000 for individuals. This means you can make up to £3,000 in capital gains in a tax year before CGT becomes due on any further gains.

If your gains exceed this allowance, you may need to pay CGT on the amount above the threshold, depending on your taxable income and the type of asset you sold.

CGT Rates for 2026/27

The CGT rate you pay depends on your taxable income and the type of asset you dispose of.

For disposals made on or after 6 April 2026, the main CGT rates for individuals are:

• 18% if your gains fall within the basic-rate band.
• 24% if your gains fall above the basic-rate band.

These rates apply to most chargeable assets, including residential property and other assets. Different rules may apply if you qualify for reliefs such as Business Asset Disposal Relief or Investors’ Relief.

Reporting and Payment

If you sell a UK residential property and owe CGT, you usually must report and pay the tax within 60 days of completion of the sale. For other assets, CGT is normally reported through your Self Assessment tax return and paid by 31 January following the end of the tax year in which the gain was made.

If you have losses, reliefs, or more complex transactions, it is important to review the rules carefully before submitting your return.

Important Note

Tax rules can change, and your liability may depend on your overall income, the asset type, and whether you are claiming any exemptions or reliefs. Always check the latest guidance from HM Revenue and Customs (HMRC) or speak to a qualified tax professional for advice tailored to your situation.

Source- HMRC