Capital Gains Tax UK — Smart Financial Analysis
UK Capital Gains Tax: 10%/20% for most assets, 18%/28% for property. £6K annual allowance. BADR, spousal transfer, Bed & ISA. Here's exactly what HMRC wants.
Did our AI summary help? Let us know.
UK CGT rates: 10% (basic rate) and 20% (higher rate) for most assets (shares, crypto, collectibles). The annual exempt amount for 2024-25 is £6,000 — down from £12,300 just two years ago. Residential property gains are taxed at 18% (basic rate) or 28% (higher rate). Shares and most investments are taxed at 10% (basic) or 20% (higher).
Ready to run the numbers?
Why: UK CGT rates: 10% (basic rate) and 20% (higher rate) for most assets (shares, crypto, collectibles). For residential property: 18% (basic) and 28% (higher). Business Asset Dispo...
How: Enter Asset Type, Purchase Price (£), Sale Price (£) to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
Run the calculator when you are ready.
HMRC's Cut of Your Profits
The annual CGT allowance dropped from £12,300 to £6,000 in 2024-25. Use it or lose it. BADR, spousal transfer, Bed & ISA — here's exactly what HMRC wants.
📋 Quick Examples — Click to Load
Enter Your Details
💡 Tax-Saving Strategies
- 💑 Spousal transfer: Transfer assets to spouse before sale to use both £6K allowances (£12K total).
- ⏱️ 60-day rule: Report UK property sale to HMRC within 60 days of completion.
📊 CGT Rates Comparison
Basic vs higher, assets vs property
📈 Tax by Gain Amount
🍩 Allowance Usage
🌍 UK vs US Capital Gains
Rate Card Reference
Step-by-Step Calculation
📌 Key Reminders
- • 60-day rule: UK property sales must be reported to HMRC within 60 days of completion.
- • Bed & ISA: Sell shares, rebuy in ISA to crystallize gains within allowance.
- • Principal Private Residence: Your main home is CGT-free (plus final 9 months).
- • Crypto: Every swap is a disposal event — HMRC treats crypto as property.
Capital Gains Tax Due
CGT of £26,320 (26.32% effective rate) on a gross gain of £100,000. Net gain after allowance: £94,000.
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
Capital Gains Tax UK analysis is used by millions of people worldwide to make better financial decisions.
— Industry Data
Financial literacy can increase household wealth by up to 25% over a lifetime.
— NBER Research
The average American makes 35,000 financial decisions per year—many can be optimized with calculators.
— Cornell University
Globally, only 33% of adults are financially literate, making tools like this essential.
— S&P Global
UK Capital Gains Tax rates: 10% (basic rate) and 20% (higher rate) for most assets; 18% and 28% for residential property. The annual exempt amount is £6,000 (2024-25) — down from £12,300 just two years ago! Business Asset Disposal Relief (formerly Entrepreneurs' Relief) offers 10% on the first £1M of qualifying gains. ISA wrappers (£20K/yr) shelter investments from CGT entirely. Strategies: use annual allowances, transfer to spouse, Bed & ISA, timing gains across tax years. Property CGT must be reported and paid within 60 days of completion.
📊 By the Numbers
📐 CGT Formula
Gross Gain = Sale Price − Purchase Price. Net Gain = Gross Gain − Allowable Costs. Taxable Gain = Net Gain − Annual Exempt Amount (£6K). CGT = Taxable Gain × Rate (10–28% depending on asset and band).
⚖️ UK CGT Rates
| Asset Type | Basic Rate | Higher Rate |
|---|---|---|
| Shares/Funds/Crypto | 10% | 20% |
| Residential Property | 18% | 28% |
| Business (BADR) | 10% | 10% |
💡 Tax-Saving Strategies
- Use annual allowance (£6K) — use it or lose it
- Transfer to spouse before sale — doubles allowance to £12K
- Bed & ISA: sell, rebuy in ISA — crystallize gains under allowance
- Time disposals across tax years to use two allowances
- BADR: 10% on first £1M of qualifying business gains
⏱️ 60-Day Property Rule
UK residential property sales must be reported to HMRC within 60 days of completion. You must pay the estimated CGT at the same time. Failure to report incurs penalties. Non-UK residents selling UK property also have a 60-day reporting obligation.
🏠 Reliefs
Principal Private Residence Relief exempts gains on your main home (plus final 9 months). BADR (Business Asset Disposal Relief, formerly Entrepreneurs' Relief) applies 10% on the first £1M of qualifying gains — must own 5%+ for 2+ years.
❓ Frequently Asked Questions
What are the UK Capital Gains Tax rates?
UK CGT rates: 10% (basic rate) and 20% (higher rate) for most assets (shares, crypto, collectibles). For residential property: 18% (basic) and 28% (higher). Business Asset Disposal Relief (BADR) applies 10% on the first £1M of qualifying gains. Your band depends on total taxable income plus gains.
What is the CGT annual exempt amount?
The annual exempt amount for 2024-25 is £6,000 — down from £12,300 just two years ago. Gains below this threshold attract no CGT. Use it or lose it: the allowance does not carry forward. Married couples and civil partners can each use their own allowance.
How does CGT work on property?
Residential property gains are taxed at 18% (basic rate) or 28% (higher rate). UK property sales must be reported to HMRC within 60 days of completion, with estimated CGT paid at the same time. Principal Private Residence Relief exempts gains on your main home (plus final 9 months).
How does CGT work on shares?
Shares and most investments are taxed at 10% (basic) or 20% (higher). ISA wrappers (£20K/yr) shelter investments from CGT entirely. Bed & ISA: sell shares, rebuy in ISA to crystallize gains within your allowance; future growth is tax-free.
What CGT do higher rate taxpayers pay?
Higher and additional rate taxpayers pay 20% on most assets and 28% on residential property. Gains are added to income to determine your band. BADR offers 10% on the first £1M of qualifying business gains regardless of band.
What CGT reliefs and allowances are available?
Annual exempt amount (£6K), Principal Private Residence Relief (main home), BADR (10% on £1M business gains), spousal transfers (CGT-free at market value — doubles allowances), ISA exemption, and losses offset gains. Report UK property within 60 days.
📚 Sources
- • HMRC
- • Gov.uk
- • Tax Foundation UK
- • ICAEW
Disclaimer: Estimates for planning. Does not cover PPR, letting relief, losses, or complex cases. Consult a tax adviser.
Related Calculators
Stamp Duty Land Tax Calculator UK
Calculate UK Stamp Duty Land Tax (SDLT) with comprehensive support for all property types, corporate purchases, non-resident surcharge, first-time buyer...
FinanceNational Insurance Calculator UK
Calculate your National Insurance contributions for all employment types with current UK rates and thresholds. Comprehensive NI calculator supporting all 8...
FinanceTexas Tax Calculator
Calculate your complete tax burden in Texas including federal, FICA, property, and sales taxes
FinanceRoth IRA Calculator
Advanced Roth IRA calculator with conversion strategies, backdoor Roth analysis, and tax optimization for retirement planning
FinanceAdvanced 401(k) Calculator
Comprehensive 401(k) retirement planning calculator with employer matching, tax optimization, inflation adjustments, and multiple withdrawal strategies for...
FinanceAlternative Minimum Tax (AMT) Calculator
Calculate your potential Alternative Minimum Tax liability and compare it with your regular income tax. Factor in deductions, exemptions, and preference...
Finance