Capital Gains Tax Calculator and Allowances for 2024/2025 and 2025/26

Quick update: On October 30th 2024, Rachel Reeves stated that the tax rate for capital gains across all assets will increase from 10% and 20% to 18% and 24% effective immediately on 30th October 2024.

For the 2024/2025 tax year, individuals will need to report of assets disposed before and after this date to correctly calculate the different tax rates. For simplicity with our calculator, we have added the 2025/2026 rates but will alter this to reflect disposals before and after these dates shortly.

Calculating your Capital Gains Tax accurately is essential. You don’t want to pay more than you owe, but you also need to make sure you're meeting your tax obligations to avoid penalties. Whether you're selling a property, stocks, or other investments, knowing your exact tax liability helps you plan better and manage your finances with confidence.

Our Capital Gains Tax Calculator is designed to help you quickly and accurately work out your CGT. With just a few details—such as the purchase price, selling price, and associated costs—you can quickly work out how much tax you owe. The calculator is easy to use and gives you accurate results in minutes, making it the perfect tool for anyone looking to calculate their gains.

What is a Capital Gains Tax Calculator?

A Capital Gains Tax Calculator is a tool that helps you quickly figure out how much tax you need to pay on profits from selling an asset. You simply enter details like the type of asset, the profit you made, your income, and any tax reliefs you can claim. The calculator then shows you an estimate of the Capital Gains Tax you owe, making it easier to understand your tax obligations.

How the Capital Gains Calculator UK Works

Our CGT Tax Calculator is designed to make the process of calculating your tax easy and straightforward. Here’s how it works:

Step 1: Select the Asset Type

Start by choosing the type of asset you sold. The capital gains tax estimator lets you select either investment (such as shares, crypto or stocks) or property. Both the asset type has different tax rules, so picking the right one is important for an accurate calculation.

Step 2: Select the Capital Gains Tax Year

Next, choose the tax year in which you made the profit. Tax rates can change each year, so it’s crucial to select the right tax period. This ensures that the calculator uses the correct rates and allowances.

Step 3: Input Profits from Capital Gains

‍Next, enter the profit you made from selling the asset. This is the difference between the purchase price and the selling price, minus any costs associated with buying or selling. This is your capital gain, which forms the basis of the tax calculation.

Step 4: Enter Salary and Other Income

In this step, input your salary and any other income you earned during the same tax year. The amount of Capital Gains Tax you owe depends on your total income, because your income affects the tax rate that applies to your capital gains.

Step 5: See the Estimated CGT Payable and Profit After Tax

After entering all the details, the calculator will instantly show you three key results:

• Net Profit After Tax: This is the profit you keep after paying Capital Gains Tax.
• Estimated CGT Payable: The calculator provides an estimate of how much Capital Gains Tax you owe based on the profit and your income.
• Capital Gains Allowance: The tool also factors in your annual tax-free allowance, showing how much of your gain is tax-free.‍

Why Use Our Gains Tax Calculator?

Our Capital Gains Tax Calculator offers several advantages that make it a valuable tool for anyone dealing with capital gains:

Saves Time:
Calculating Capital Gains Tax manually can be complicated and time-consuming. Our calculator does the hard work for you, quickly providing results without the need for detailed tax knowledge or extensive calculations. It saves you time and reduces the hassle of managing your taxes.

Confidence in Accuracy:
You can trust the accuracy of our calculator because it’s built on up-to-date tax laws and HMRC regulations. This means you get reliable results that reflect your true tax liability, giving you peace of mind that you’re meeting your obligations correctly.

Comprehensive:
The calculator covers all types of assets that are subject to Capital Gains Tax in the UK. Whether you’re dealing with property, shares, crypto, or other investments, the tool provides a comprehensive solution for calculating your tax.

Plan Ahead:
Knowing your tax liability in advance allows you to plan your finances better. Whether you’re selling a property, shares, or cryptocurrency, understanding your tax bill helps you make informed decisions.

Free to Use:
Our Capital Gains Tax Calculator is completely free to use, with no hidden costs. You can use it as often as you need to, making it a convenient and cost-effective way to manage your tax calculations.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax you pay on the profit you make when you sell or dispose of an asset that has increased in value. In the UK, this tax applies to various assets, including property, shares, crypto currency, and certain investments. The tax is only charged on the gain you make, not on the entire amount you receive from selling the asset. For example, if you bought a property for £200,000 and later sold it for £300,000, you would only pay CGT on the £100,000 profit.

Capital Gains Tax Rates in the UK

In the UK, Capital Gains Tax rates depend on your total income and the type of asset you’re selling. For the 2024/25 and 2025/26 tax year, the rates are as follows:

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Your total income for the year determines whether you pay the basic rate or the higher rate. If your income, including your capital gains, falls within the basic tax band, you will pay the basic rate on your gains. If your income pushes you into the higher tax band, the higher rate will apply.

Annual Capital Gains Tax Allowance

Not all capital gains are taxed. In the UK, individuals benefit from an annual exemption allowance, known as the annual exempt amount (AEA), which allows you to make a certain amount of profit each year without paying any Capital Gains Tax. For the 2024/25 and 2025/26 tax year, the annual exemption allowance is £3,000. This means that if your total gains for the year are below this amount, you won’t owe any tax on them.

Here are the previous Capital Gains Tax Allowances by tax year:

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Capital Gains Tax is only due if your total gains for the tax year, after subtracting any losses and applying available reliefs, exceed the annual exempt amount.

The annual exempt amount applies to:

• Most individuals residing in the UK
• Executors or personal representatives managing a deceased person's estate
• Trustees of disabled individuals

A reduced annual exempt amount is applicable to most other trustees.

Non-residents who sell a UK residential property are subject to Capital Gains Tax and can generally claim the annual exempt amount similarly to UK residents. However, companies selling UK residential properties are not eligible for this allowance but may be able to claim other deductions.

Who Needs to Pay Capital Gains Tax

Do You Need to Pay Capital Gains Tax?

You may need to pay Capital Gains Tax if you sell or dispose of certain assets for more than you paid for them. This tax applies to the profit you make when you sell, give away, exchange, or otherwise dispose of an asset that has increased in value. Here are some common scenarios where Capital Gains Tax could apply:

• Selling a second home or buy-to-let property.
• Selling shares or investments outside of an ISA.
• Selling a business or business assets.
• Exchanging or gifting valuable assets, like artwork or antiques.
• Selling cryptocurrency that has increased in value.

If you fall into one of these scenarios, you may have to pay Capital Gains Tax on the profit you make from the sale or transfer.

Types of Assets Liable for Capital Gains Tax

Capital Gains Tax applies to a wide range of assets. Some of the most common types of assets that are liable for this tax include:

• Property: This includes second homes, buy-to-let properties, and land that isn't your main residence.
• Shares: If you sell shares that aren’t in an ISA or pension, you may need to pay tax on the gains.
• Business Assets: If you sell your business or assets like equipment or property used in your business.
• Valuable Personal Items: Items such as artwork, antiques, jewelry, or collectibles worth over £3,000.
• Cryptocurrency: If you sell or exchange cryptocurrency and make a profit, it may be subject to Capital Gains Tax.

Exceptions to the Rule

Not all assets are subject to Capital Gains Tax. Some key exceptions include:

• Primary Residence Relief: If you sell your main home, you generally won’t have to pay Capital Gains Tax, provided it has been your primary residence for the entire time you’ve owned it. This is known as Private Residence Relief.
• Personal Belongings: Items worth less than £3,000, such as your car or everyday household items, are usually exempt from Capital Gains Tax.
• Investments Held in ISAs: Any profits made from investments within an ISA (Individual Savings Account) are tax-free and do not attract Capital Gains Tax.

How to Reduce Your Capital Gains Tax Liability

Reducing your Capital Gains Tax (CGT) liability is possible through several reliefs and exemptions available in the UK. By understanding and using these options, you can significantly lower the amount of tax you owe when you sell an asset. Here are some key reliefs and strategies to consider:

1. Private Residence Relief: If you sell your main home, you usually don’t have to pay Capital Gains Tax. This is known as Private Residence Relief. To qualify, the property must have been your primary residence for the entire time you owned it. If you’ve rented out part of your home or used it for business purposes, you may still be eligible for partial relief. This exemption can save you a considerable amount of tax, especially if your home has increased in value significantly over time.‍
2. Entrepreneurs' Relief: If you sell a business or shares in your own company, you may be eligible for Entrepreneurs' Relief (now known as Business Asset Disposal Relief). This relief reduces the Capital Gains Tax rate to just 10% on qualifying gains, up to a lifetime limit of £1 million. This lower tax rate can be a huge benefit for business owners looking to sell all or part of their business.‍
3. Gifts to your Spouse or Charity: Gifting assets between spouses or civil partners is another way to reduce your CGT liability. Also, you do not have to pay Capital Gains Tax on assets you give away to charity.

Tax Planning Strategies to Reduce CGT

In addition to the reliefs and exemptions, there are some tax planning strategies you can use to reduce your Capital Gains Tax liability:

• Make Use of Your Annual Exemption Allowance: Each individual in the UK has an annual CGT allowance (£3,000 for the 2024/25 tax year). This means you can make gains up to this amount each year without paying any tax. If you’re planning to sell multiple assets, consider spreading out the sales over different tax years to maximize this allowance.
• Offset Losses Against Gains: If you’ve made a loss on any assets, you can use this to offset your gains, reducing the amount of tax you owe. For example, if you made a gain on one investment but lost money on another, you can deduct the loss from the gain to lower your taxable profit.
• Use Tax-Efficient Accounts: Investing through tax-efficient accounts like ISAs (Individual Savings Accounts) can help you avoid Capital Gains Tax altogether. Any gains made within an ISA are completely tax-free, so it’s a smart way to shelter your investments from CGT.

Easily Calculate UK Capital Gains Tax with Our Calculator

Use our Capital Gains Tax Calculator today to get an accurate estimate of what you owe. This tool takes the guesswork out of complex tax calculations, ensuring you know exactly how much CGT you need to pay.

While our calculator is a powerful tool, sometimes you need expert advice to handle the complexities of Capital Gains Tax. If you need more personalised advice, GoForma is here to help. Hire our expert property accountants and crypto accountants to maximize your tax savings and make the most of all available tax reliefs and exemptions.

Capital Gains Tax Calculator FAQs

Which assets are subject to CGT?

CGT applies to various assets, including property that isn't your main home, shares that aren’t in an ISA or PEP, business assets, and valuable items like jewelry, antiques, or artwork.

How is CGT calculated?

To calculate CGT, subtract the original purchase price of the asset from the sale price to determine your gain. Then, deduct any allowable expenses or reliefs. The remaining amount is the profit subject to CGT. The tax rate you pay depends on your income and the type of asset.

Can I reduce my CGT liability?

Yes, you can reduce your CGT liability by using strategies like claiming your annual tax-free allowance, offsetting losses against gains, and taking advantage of available reliefs, such as Private Residence Relief or Business Asset Disposal Relief.

When to report and pay Capital Gains Tax?

You must report your Capital Gains Tax by December 31st in the tax year following the one in which you made the gain and pay the tax by January 31st. For example, if you made a gain during the 2024 to 2025 tax year, you need to report it by December 31st, 2025, and pay the tax by January 31st, 2026.

What is the Capital Gains Tax allowance for 2024/25 and 2025/26 year?

For the 2024/25 and 2025/26 tax year, the Capital Gains Tax (CGT) allowance in the UK is £3,000. This means you can make gains of up to £3,000 in the tax year before you have to pay any CGT. If your total gains are below this allowance, you won't need to pay Capital Gains Tax.

Can losses offset gains?

Yes, you can use losses to offset gains, reducing the amount of Capital Gains Tax owed. Unused losses can be carried forward to future years.