Question 1

What is Capital Gains Tax (CGT)?

Accepted Answer

Capital Gains Tax is a tax on the profit you make when you sell or dispose of an asset that has increased in value. You pay CGT on the gain, not the total sale proceeds. It applies to assets such as residential property (that is not your main home), shares, business assets, and valuable personal possessions worth over £6,000. Your main residence is usually exempt under Private Residence Relief.

Question 2

What is the annual CGT exempt amount?

Accepted Answer

Each tax year, every individual has a CGT annual exempt amount of £3,000 in 2025/26. You only pay CGT on gains above this threshold. This allowance was reduced from £6,000 in 2023/24 and £12,300 in previous years. Unused allowance cannot be carried forward to the next tax year.

Question 3

What are the CGT rates for property vs shares in 2025/26?

Accepted Answer

Since 30 October 2024, CGT rates are 18% for basic-rate taxpayers and 24% for higher-rate taxpayers on all asset types (shares, crypto, and residential property excluding your main home). Business Asset Disposal Relief is 14% (rising to 18% from April 2026). Carried interest is 32%. Your CGT rate depends on whether your total income including the gain falls within the basic or higher-rate tax band.

Question 4

How is CGT calculated when I have other income?

Accepted Answer

CGT is calculated by stacking your gain on top of your other income for the year. If your income already uses up the basic rate band (£50,270), your entire gain is taxed at the higher rate. If you have remaining basic rate band available, the first slice of your gain uses that band at the lower rate, and the remainder is taxed at the higher rate.

Question 5

When and how do I pay CGT to HMRC?

Accepted Answer

For UK residential property, you must report and pay CGT within 60 days of completion using HMRC's online CGT on UK property service. For other assets such as shares, CGT is reported through Self Assessment and paid by 31 January following the end of the tax year. Failure to report on time can result in penalties and interest charges.

Question 6

Can I use capital losses to reduce my CGT bill?

Accepted Answer

Yes. Capital losses from the same tax year are deducted from your gains before the annual exempt amount is applied. Losses that exceed gains can be carried forward to future tax years to offset future gains. You must report losses to HMRC within four years of the end of the tax year in which they arose in order to preserve them.

Question 7

Does my main home qualify for CGT exemption?

Accepted Answer

Your primary residence is usually exempt from CGT under Private Residence Relief, provided it has been your only or main home throughout the period of ownership. If you let it out, used part of it for business, or owned more than one property and nominated another as your main residence, the relief may be restricted. Always seek professional advice for complex property disposals.

Question 8

How accurate is this calculator?

Accepted Answer

This calculator applies 2025/26 CGT rates and thresholds and is a reliable guide for straightforward disposals. It does not account for Business Asset Disposal Relief, Investors' Relief, gift holdover relief, or complex scenarios involving trusts or business assets. For personalised advice, consult a tax adviser or chartered accountant.

Capital Gains Tax Calculator

Rates & sources2025/26

Full 2025/26 tax summary as a PDF

When to use this calculator

Worked example: £20,000 gain on shares (basic-rate taxpayer)

How to read your results

Tax Due

Net Gain After Tax

Taxable Gain

Effective Rate

Common mistakes

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