How Capital Gains Tax works (2026/27)
You pay Capital Gains Tax (CGT) on the profit when you sell an asset such as shares or a second property. The first £3,000 of gains each year is tax-free (the annual exempt amount). The rest is taxed at 18% or 24%, depending on your income.
How the rate is decided
Your taxable gain is added on top of your income. The part that falls within your remaining basic-rate band is taxed at 18%; anything above the basic-rate band is taxed at 24%. Since 30 October 2024, shares and residential property use the same 18%/24% rates.
Example: £30,000 income + £20,000 gain
After the £3,000 allowance, £17,000 is taxable. With £30,000 income you have plenty of basic-rate band left, so the whole £17,000 is taxed at 18% = £3,060.
What this calculator does not include
- Private Residence Relief (your main home is usually CGT-free), Business Asset Disposal Relief, and losses carried forward.
- CGT on carried interest or other special assets.
Is my main home taxed?
Usually not — your main residence normally qualifies for Private Residence Relief and is exempt. CGT typically applies to second homes, buy-to-lets and investments.
Are shares and property taxed differently?
No longer — since 30 October 2024 both use 18% (basic rate) and 24% (higher rate).
More United Kingdom calculators
This calculator provides estimates for the 2026/27 tax year based on published HMRC rates and is for general information only — it is not financial or tax advice. It excludes Private Residence Relief, Business Asset Disposal Relief, losses and other reliefs. For your exact position see GOV.UK. Source: GOV.UK (Capital Gains Tax rates and allowances).