Capital Gains Tax Calculator - Work Out Your Gain

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.

Sold an asset recently? Wondering how much tax you'll owe or save?

If you've made some money from selling a second home, shares, or even cryptocurrency, you might need to pay Capital Gains Tax. This tax is applied to the profit you earn when you sell or dispose of an asset that has increased in value. It affects individuals, landlords, investors, and self-employed business owners all over the UK.

Figuring out how much Capital Gains Tax (CGT) you need to pay can be a bit of a puzzle, especially with all the different rates, reliefs, and allowances to consider. Use our Capital Gains Tax Calculator tailored specifically for UK taxpayers and wor kout CGT tax you owe in just a few clicks.

What is a Capital Gains Tax Calculator?

A Capital Gains Tax (CGT) Calculator is an online tool designed to help you figure out how much tax you might owe when you sell or dispose an asset that has increased in value.

When you sell items like property, stocks, or cryptocurrencies for more than what you originally paid, you could end up with a profit, known as a capital gain. The CGT calculator gathers some essential information from you like the type of asset, the profit you made, your income, and any tax reliefs you can claim, and provides you with an estimate of the CGT you owe after deducting any allowances or reliefs.

How Our Capital Gains Estimator Works

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

Step 1: Select the Asset Type

To get started, first, select the type of asset you sold. The gain tax calculator allows you to choose between investments like shares, crypto, or stocks, and property. Each type of asset comes with its own set of tax rules, so it’s essential to pick the right one for an accurate calculation.

Step 2: Select the Capital Gains Tax Year

Next up, choose the tax year when you made your profit for example 2024/2025. Tax rates can vary from year to year, so it’s important to select the correct tax period. This way, the calculator can apply the right rates and allowances.

Step 3: Input Profits from Capital Gains

‍Now, enter the profit you earned from selling the asset. This is calculated by taking the difference between the purchase price and the selling price, minus any costs related to buying or selling. This figure represents your capital gain, which is key for the tax calculation.

Step 4: Enter Salary and Other Income

In this step, you’ll need to input your salary and any additional income you earned during that same tax year. The amount of Capital Gains Tax you owe is influenced by your total income, as it affects the tax rate applied 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 calculations:

• Net Profit After Tax: This is the profit you keep after paying Capital Gains Tax UK.
• 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 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:

‍

‍

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.

Capital Gains Tax Allowance

Not all capital gains are subject to tax. In the UK, individuals can take advantage of an annual exemption allowance, often referred to as the annual exempt amount (AEA). This CGT allowance lets you earn a certain amount of profit each year without having to pay any Capital Gains Tax.

For the 2024/25 and 2025/26 tax year, the capital gains tax allowance is £3,000. So, if your total gains for the year fall below this threshold, you won’t have to pay any tax on them.

Here are the Capital Gains Allowances by tax year:

When it comes to Capital Gains Tax, you only need to pay if your total gains for the tax year, after deducting any losses and applying any available reliefs, go over the annual CGT tax allowance.

The capital allowance applies to:

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

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

If you're a non-resident selling a UK residential property, you’ll also be subject to Capital Gains Tax, but you can usually claim the annual exempt amount just like UK residents do. On the flip side, companies selling UK residential properties don’t qualify for this allowance, although they might be able to claim other deductions.

Who Needs to Pay Capital Gains Tax

You might find yourself needing to pay Capital Gains Tax (CGT) if you decide to sell or dispose certain assets that have increased in value since you purchased them. This tax is calculated based on the profit you earn, not the total amount you sell for. It applies to individuals, not companies, and covers a wide range of assets.

Here are some typical scenarios where CGT may apply:

• Second Homes or Buy-to-Let Properties - If you sell a property that isn’t your primary residence, like a vacation home or a rental, you may be liable for CGT on the profit you make. This holds true even if you only used the property occasionally or rented it out from time to time.
• Shares and Investments - When you sell shares, stocks, or units in a fund, CGT may apply if your gains exceed the tax-free CGT allowance. However, shares held within ISAs or pensions are exempt from CGT.
• Business Assets - Selling items related to your business such as land, buildings, or equipment, might also trigger CGT. Fortunately, there are reliefs available, like Business Asset Disposal Relief, that can help lower your tax burden.
• Cryptoassets (Bitcoin, Ethereum, etc.) - If you sell or trade cryptocurrencies like Bitcoin or Ethereum, that counts as a disposal. If you’ve made a profit, it could be subject to CGT. This also includes converting crypto to traditional currency or swapping one cryptocurrency for another.

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.

What’s Exempt from Capital Gains Tax?

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 £6,000, 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.
• Gains passed to a spouse or civil partner
• Charity donations

How to Reduce Your Capital Gains Tax Liability

Paying Capital Gains Tax (CGT) is sometimes unavoidable, but there are some clever legal strategies to help lighten the load. With a few smart moves, you can keep more of your hard-earned profits when it comes time to sell or transfer your assets.

• Use Your Annual Allowance Before 5 April - Every UK taxpayer is entitled to a tax-free CGT allowance each year, which for the 2025/26 tax year is set at £3,000. Remember, if you don’t use it, you lose it! So, if you’re thinking about selling any assets, try to do it before the tax year ends on 5 April to help lower your tax bill.
• Offset Losses From Previous Years - If you’ve made losses from selling other assets in the past, you can carry those losses forward to offset gains in the current year. Just make sure those losses were reported to HMRC in previous tax years, as this is a step that often gets overlooked.
• Take Benefit of 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.
• Consider Splitting Assets With Your Spouse - If you’re married or in a civil partnership, you can transfer assets between each other without incurring CGT. By sharing ownership before selling, you might be able to take advantage of two tax-free allowances and potentially benefit from lower tax rates, depending on each person’s income.
• Time Your Sale Carefully - If you’re expecting a significant gain, consider spreading the sale over two tax years. This way, you can utilise the tax-free allowance twice. For example, selling part of your investment in March and the rest in April could help reduce your overall tax bill.
• Invest Through Tax-Efficient Wrappers - Investing your money in ISAs, pensions, or other tax-efficient accounts means you won’t have to pay CGT on any gains made within those accounts. It’s a smart way to grow your wealth over time while avoiding extra taxes.

Easily Calculate UK Capital Gains Tax with Our Calculator

Use our Capital 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.

Whether you're selling a property, shares, business assets, or even crypto, navigating Capital Gains Tax can be a bit of a headache. But don’t worry,our property accountants and crypto accountants are here to simplify the process for you. We’ll help you figure out what you owe, see if you qualify for any reliefs, and take care of all the paperwork. You can expect clear advice, complete support, and the peace of mind that comes from knowing everything is handled correctly.

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.

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 2024/2025 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.

What if I made a loss?

If you made a loss when selling an asset, you can report it to HMRC and use it to reduce your gains in the same or future tax years. This helps lower your Capital Gains Tax bill.

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.

Do I need to pay Capital Gains Tax on my main home?

You don’t need to pay Capital Gains Tax when you sell your main home, as it’s covered by Private Residence Relief. This applies if you’ve lived in the property as your only or main home for the entire time you owned it.

Can I use the calculator for crypto or NFTs?

Yes, you can use the calculator to estimate Capital Gains Tax on crypto and NFTs. Just enter your purchase and sale details to see if any tax is due.