UK Capital Gains Tax Calculator 2025/26.

For residential property disposals in the UK in 2025/26, the rates are 18% on the portion of the gain falling within your basic rate band and 24% on the portion in the higher rate band. The £37,700 basic rate band is reduced first by your other taxable income for the year. So if you earn £40,000 of other income, all of your basic rate band is used and the entire CGT on the property is at 24%. The first £3,000 of total gains is tax-free under the Annual Exempt Amount. Married couples each have their own £3,000 AEA on jointly held assets.

Since April 2020, UK residential property disposals creating a Capital Gains Tax charge must be reported and the tax paid within 60 days of completion via HMRC's online residential property service. This is in addition to (not instead of) your annual Self Assessment. Penalties for late filing start at £100 then escalate. Most generalist firms still treat property CGT as an annual SA matter and miss the 60-day window. LOYALS handles the 60-day report for £350 per disposal, usually filed within days of completion. Non-residential assets such as shares, business assets and second homes do not have the 60-day reporting requirement and are reported through annual Self Assessment only.

BADR (formerly Entrepreneurs' Relief) reduces the CGT rate on qualifying disposals of trading business assets, including shares in your own personal trading company. The rate was 10% until 5 April 2025, rose to 14% for 2025/26 and rises again to 18% from 6 April 2026 onwards. The lifetime limit stays at £1 million. To qualify you must have held a trading business or 5%+ shareholding in your personal trading company for at least two years. Above the £1M lifetime limit, gains are taxed at standard CGT rates. Founders selling their company should consider timing carefully given the rate changes.

Private Residence Relief (PRR) exempts the gain on disposal of your main home from Capital Gains Tax. It applies for the period the property was your only or main residence, plus the final 9 months of ownership regardless of use. So if you owned a property for 10 years, lived there for 6 years and rented it out for 4 years, PRR covers approximately 6 years plus the final 9 months out of 10 years, leaving roughly 3 years 3 months of the gain potentially taxable. Letting Relief is available in limited circumstances on top of PRR. The detail of calculating PRR can be technical and we handle it as part of any property CGT engagement.

Yes. Capital losses in the same tax year are offset against gains automatically before the Annual Exempt Amount is applied. Unused losses carry forward indefinitely and can be used against gains in future tax years (after that year's AEA is applied). Brought-forward losses must be claimed within 4 years of the tax year of the loss. Losses on connected-party transactions, certain wasting assets and assets with no real value can have specific rules. Married couples can transfer assets between spouses without triggering CGT, which is a common planning approach to use both spouses' AEAs and basic rate bands.

Allowable deductions are the original purchase cost, the costs of acquisition (legal fees, surveys, Stamp Duty Land Tax paid on purchase), capital improvements (extensions, new kitchens that genuinely add value, not normal repairs and maintenance which are revenue), and the costs of disposal (estate agent fees, legal fees on sale, advertising). Mortgage interest is NOT deductible against CGT (it goes against rental income for landlords, subject to Section 24). Renewals of items previously deducted as repairs are not capital. We work through the full list of allowable deductions on every CGT engagement to make sure no qualifying expense is missed.