FullWorkings UK tax and finance calculators

Capital Gains Tax

2026-27

The disposal

Sold forThe proceeds, or the market value if you gave it away. £
Paid for itWhat it cost you, or its value when you inherited it. £
CostsBuying and selling costs, and money spent improving it. Not repairs or mortgage interest. £
Losses to set against itLosses from this year, and unused losses carried forward. £

You

Income before taxSalary, self-employment, pension and rent. It decides the rate on the gain. £
ReliefBusiness Asset Disposal Relief applies when you sell all or part of a business you have run.

What it costs

Capital Gains Tax £0.00 on this disposal
Gain£0.00
Less the annual exempt amount£0.00
Taxable gain£0.00
Tax£0.00
Left from the gain£0.00

How your income was used

Your taxable income£0.00
Basic rate band left for the gain£0.00
Effective rate on the gain—
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How this is worked out

A gain is taxed as the top slice of your income. Whatever is left of your basic rate band after your income has used it is taxed at the lower rate; everything above it is taxed at the higher one.

⚠ The rule is written in taxable income, not gross

gov.uk's own worked examples say "your taxable income (your income minus your Personal Allowance and any Income Tax reliefs)". That is not the number on your payslip. This page asks for income before tax — the figure you actually know — and takes the Personal Allowance off for you.

Getting that wrong is the most expensive mistake available here. A calculator that treats a £20,000 salary as £20,000 of taxable income throws away £12,570 of basic rate band and taxes that much of the gain at the higher rate for no reason.

Residential property is not rated separately any more

⚠ Until 30 October 2024 property gains were taxed at 18% and 28% while everything else was 10% and 20%. A great deal of published material still says so. From 6 April 2026 it is the same two rates for all chargeable assets, so shares, a second home and a painting are all treated alike.

Scotland does not change this

Capital Gains Tax is not devolved. The Scottish Parliament sets Income Tax rates on earnings, and that is all — the basic rate band used here is the UK one wherever you live. gov.uk's Capital Gains pages name a single basic rate band with no Scottish alternative, which is why this page has no region to choose.

The annual exempt amount goes where it is worth most

It is set against the gains that would otherwise be taxed at the highest rate. With one disposal that makes no difference; with several it is worth more to a higher-rate payer than to a basic-rate one.

Business Asset Disposal Relief

One flat rate on qualifying gains, with a £1 million lifetime limit — not per disposal, and not per year. This page assumes you have not used any of it. If you have, the used part is taxed at the ordinary rates instead.

What this does not cover

Private Residence Relief on a home you have lived in, which is the reason most house sales are not taxed at all. Several disposals in one year at different rates. Shares matched under the same-day and 30-day rules or pooled under section 104. Trusts and estates, which have their own rate and a smaller exempt amount. Gains reported under the 60-day property rules, which is a deadline question rather than an amount. Non-residents, and anyone claiming the foreign income and gains regime, who may get no exempt amount at all.

Where these figures come from

Every rate above is read from a dated rate file rather than written into the page, and each one is checked against the gov.uk page it came from. How these numbers are kept right sets out the whole process.

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