What is the CGT annual exempt amount for 2025/26?

The annual exempt amount for 2025/26 is £3,000 per person. This was reduced from £6,000 in 2023/24 and £12,300 in 2022/23. You only pay CGT on gains above this threshold. The exemption cannot be carried forward — use it or lose it each tax year.

What is Principal Private Residence (PPR) relief?

PPR relief exempts your main home from CGT. If you lived in the property for the entire ownership period, the full gain is exempt. If you lived in it for part of the time, you get proportional relief based on months occupied, plus the last 9 months of ownership are always covered.

Can I transfer assets to my spouse to reduce CGT?

Yes. Transfers between spouses and civil partners are CGT-free (known as a 'no gain no loss' transfer). This lets you use both annual exempt amounts (£6,000 combined) and potentially access a lower CGT rate band. The receiving spouse takes on the original cost basis.

Capital Gains Tax Calculator 2025/26

Calculate CGT on shares, property, and other assets. See your tax bill with HMRC rates, annual exemption, PPR relief, and find planning strategies to legally reduce what you owe.

Calculate CGT when selling shares, funds, or other assets

Purchase price

Original cost of shares

Sale price

Amount you sold for

Income tax band

Based on your total taxable income

Costs (broker fees, stamp duty)

Buying + selling fees

Annual exemption already used

From other disposals this tax year

Annual income

Employment + other income for rate calculation

Years held

May qualify for BADR if 2+ years

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How to Use This Calculator

CGT on Shares tab

The default tab. Enter your purchase price, sale price, and income tax band. The calculator shows your total gain, annual exempt amount deduction, and CGT at the correct rate (18% or 24%). Expand "More options" to add broker fees, exemption already used, and holding period for BADR eligibility.

CGT on Property tab

For residential property disposals. Enter purchase and sale prices, improvement costs, and selling costs. If you lived in the property, enable Principal Private Residence relief to see how much is exempt. The calculator includes letting relief and the 60-day reporting reminder.

Planning Strategies tab

Enter your total gains, income, and marital status. The calculator ranks strategies by potential savings: annual exemption, spouse transfers, bed & ISA, timing across tax years, loss offsetting, and EIS/SEIS deferral. Each strategy shows estimated savings at your tax rate.

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The Formula

Capital Gains Tax is calculated on the gain, not the sale price:

Total Gain = Sale Price − Purchase Price − Allowable Costs

Taxable Gain = Total Gain − Reliefs (PPR, letting) − Losses − Annual Exempt Amount

CGT (all assets) = Taxable Gain × 18% (basic) or 24% (higher/additional)

Effective Rate = CGT Owed ÷ Total Gain × 100

If your gains push you from the basic rate into the higher rate band, the gain is split: the portion within the basic rate band is taxed at the lower rate, and the remainder at the higher rate. Your total income determines how much basic rate band is available.

Example

Sarah — Marketing Manager, 38, London

Sarah earns £55,000 and sells shares bought for £10,000 at £25,000. She paid £100 in broker fees. She is a higher rate taxpayer and hasn’t used her annual exemption.

CGT on Shares tab

Sale proceeds£25,000

Less: purchase price−£10,000

Less: broker fees−£100

Total gain£14,900

Less: annual exempt amount−£3,000

Taxable gain£11,900

CGT at 24% (higher rate)£2,856

Sarah pays £2,856 in Capital Gains Tax. Her effective rate on the total gain is 19.2%. She takes home £22,044 after CGT and fees.

Planning Strategies tab

Transfer half to spouseSave £600

Bed & ISA (annual exemption)Save £600

Spread across tax yearsSave £600

If Sarah transfers half the shares to her husband before selling, they each use their £3,000 exemption. Combined saving: £600.

FAQ

How much Capital Gains Tax do I pay in 2025/26? ▼

CGT rates for 2025/26 are unified at 18% (basic rate) or 24% (higher/additional rate) for all assets — shares, property, and crypto. You get a £3,000 annual exempt amount before any tax is due. The first £3,000 of gains each year is tax-free.

What is the annual exempt amount for 2025/26? ▼

The annual exempt amount is £3,000 per person for 2025/26. This was reduced from £6,000 in 2023/24 and £12,300 in 2022/23. It’s a use-it-or-lose-it allowance — you cannot carry unused exemption to the next year. Married couples and civil partners each get their own £3,000.

Do I need to report property sales within 60 days? ▼

Yes. Since April 2020, UK residents must report and pay CGT on residential property disposals within 60 days of completion. Use HMRC’s “Report and pay Capital Gains Tax on UK property” online service. Late reporting attracts a £100 penalty plus interest on unpaid tax. This applies even if you’re also filing a Self Assessment return.

What is Business Asset Disposal Relief (BADR)? ▼

BADR (formerly Entrepreneurs’ Relief) allows qualifying business owners to pay CGT at 14% on the first £1 million of lifetime gains (rising to 18% from April 2026). To qualify, you must have owned the business (or held at least 5% of shares in a trading company) for at least 2 years. This applies to sole traders, partnerships, and qualifying company shares.

Can I reduce my CGT bill by transferring assets to my spouse? ▼

Yes. Transfers between spouses and civil partners are treated as “no gain no loss” — no CGT is charged. When the receiving spouse later sells, they use the original cost basis. This strategy lets you use both £3,000 annual exemptions (£6,000 combined) and potentially access a lower tax band. The transfer must be a genuine gift, not a sale.

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