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Select the tax year of disposal
Total amount received on sale
Original purchase price
Solicitor fees, stamp duty, improvements
Your taxable income (after personal allowance)
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About

Capital Gains Tax in the UK applies to the profit on disposal of assets exceeding the Annual Exempt Amount (AEA). Miscalculating your liability risks underpayment penalties from HMRC, currently charged at 5.5% of unpaid tax after 30 days plus daily interest at the Bank of England base rate plus 2.5%. The rates diverge sharply by asset class: residential property disposals attract higher rates than shares or other chargeable assets. From 6 April 2024, the AEA dropped to £3,000, down from £6,000 in 2023/24 and £12,300 in prior years. This tool applies the correct rates, band-splitting logic, and exempt amounts for each tax year so you can validate your self-assessment figures before filing.

Note: this calculator assumes a single disposal in a given tax year and does not account for carried-forward losses, Business Asset Disposal Relief (formerly Entrepreneurs' Relief), or Private Residence Relief. If you hold multiple assets disposed in the same year, calculate each separately and manually aggregate. Pro tip: always deduct allowable costs (solicitor fees, stamp duty on acquisition, improvement costs) before computing gain. Omitting these inflates your liability unnecessarily.

capital gains tax CGT calculator UK tax HMRC property tax shares tax annual exempt amount tax year 2024

Formulas

The core Capital Gains Tax computation follows a three-step pipeline: compute the raw gain, subtract the Annual Exempt Amount, then apply banded rates.

G = Psale Pbuy C

where G = total gain, Psale = disposal proceeds, Pbuy = acquisition cost, C = allowable costs (legal fees, improvement expenditure, stamp duty on purchase).

TG = max(G AEA, 0)

where TG = taxable gain and AEA = Annual Exempt Amount for the tax year.

Band-splitting applies when the taxpayer has unused basic rate band. Let Rb = remaining basic rate band = Basic Rate Limit Taxable Income.

{
Tax = TG × rbasic if TG RbTax = Rb × rbasic + (TG Rb) × rhigher otherwise

where rbasic and rhigher depend on asset type: for residential property in 2024/25, rbasic = 18% and rhigher = 24%. For shares and other assets, rbasic = 10% and rhigher = 20%.

Reference Data

Tax YearAEABasic Rate (Other)Higher Rate (Other)Basic Rate (Residential)Higher Rate (Residential)Basic Rate Band Limit
2024/25£3,00010%20%18%24%£37,700
2023/24£6,00010%20%18%28%£37,700
2022/23£12,30010%20%18%28%£37,700
2021/22£12,30010%20%18%28%£37,700
2020/21£12,30010%20%18%28%£37,700
2019/20£12,00010%20%18%28%£37,500
2018/19£11,70010%20%18%28%£34,500
2017/18£11,30010%20%18%28%£33,500
2016/17£11,10010%20%18%28%£32,000
2015/16£11,10018%28%18%28%£31,785

Frequently Asked Questions

Your taxable income determines how much of the basic rate band (£37,700 in 2024/25) you have already consumed. If your taxable income is £30,000, you have £7,700 of basic rate band remaining. The first £7,700 of your taxable gain is charged at the lower CGT rate, and any excess at the higher rate. Entering your taxable income accurately is critical - overestimating it inflates the tax; underestimating risks underpayment.
The UK government reduced the AEA from £12,300 (2022/23) to £6,000 (2023/24) and then to £3,000 (2024/25) as part of fiscal tightening measures announced in the Autumn Statement 2022. This means gains that were previously tax-free now attract CGT. For a higher-rate taxpayer disposing of shares, this change alone adds up to £1,860 in additional tax compared to 2022/23.
HMRC permits deduction of: solicitor and conveyancing fees on both acquisition and disposal, stamp duty land tax paid on purchase, estate agent fees on sale, costs of improvements that enhanced the asset's value (not maintenance or repairs), and valuation fees required for the CGT computation. You cannot deduct mortgage interest, insurance premiums, or general upkeep costs.
No. This calculator computes the CGT on a single disposal without loss relief. If you have capital losses from prior years, subtract them from your total gain manually before entering the net figure as your disposal proceeds minus acquisition cost. HMRC requires you to report losses within 4 years of the tax year in which they arose.
From 6 April 2024 (tax year 2024/25), the higher rate on residential property dropped from 28% to 24%, while the basic rate remained at 18%. For tax years 2023/24 and earlier, residential property rates were 18% (basic) and 28% (higher). This calculator automatically applies the correct rates based on your selected tax year.
UK residents must report and pay CGT on residential property disposals within 60 days of completion (reduced from 30 days for completions on or after 27 October 2021). Late filing incurs a £100 fixed penalty, with further penalties accruing after 6 and 12 months. Interest runs from the 60-day deadline. For non-residential assets, CGT is reported via your self-assessment tax return by 31 January following the end of the tax year.