Capital Gains Tax UK Calculator
Calculating Capital Gains Tax (CGT) in the UK can be a complex process, especially when you are unsure of the current tax rates and the various exemptions available. If you have made a profit from selling assets such as property, shares, or other investments, you may be liable to pay Capital Gains Tax. This tax is calculated based on the difference between the selling price and the purchase price, after deducting any allowable costs. To simplify this process, you can use our Capital Gains Tax UK Calculator below.
Capital Gains Tax Calculator
Using the Capital Gains Tax UK Calculator is simple and can help you quickly estimate how much tax you owe. Whether you're selling a second home, shares, or other investment properties, this tool allows you to input the necessary details and get an estimate of the tax liability. Keep in mind that the calculator provides an estimate, and you should consult with a tax professional to ensure accuracy and compliance with UK tax laws.
Understanding Capital Gains Tax in the UK
Capital Gains Tax is charged on the profit made from the sale of assets that have increased in value. This includes assets such as properties (not your primary residence, which may be exempt under certain conditions), stocks, bonds, and business interests. In the UK, individuals have an annual exempt amount for CGT, meaning you won't pay tax on gains up to a certain limit. For the tax year 2024/25, the annual exempt amount is £6,000. Anything above that threshold is subject to CGT.
Tax Rates
The rate of Capital Gains Tax you pay depends on your income level and the type of asset sold. For basic-rate taxpayers, the tax rate is 10% for most assets, while higher-rate taxpayers may face a rate of 20%. For residential property sales, the rates are 18% for basic-rate taxpayers and 28% for higher-rate taxpayers.
Why Use a Capital Gains Tax Calculator?
Using an online Capital Gains Tax calculator can make estimating your tax obligation quicker and more accurate. With just a few simple inputs, such as the purchase price, selling price, and any allowable costs, the calculator can give you an estimated tax amount. It's a valuable tool for those who are looking to sell assets and want to plan ahead for potential tax liabilities.