Capital Gains Tax Calculator

Work out your capital gains tax with our handy Capital Gains Tax Calculator.

Please note these figures are indicative, are not factual and can vary depending on your situation. For more accurate calculations and advice please get in touch with our team.

Capital Gains Tax (CGT) is one of the most misunderstood areas of taxation in the UK. Whether you’re selling shares, property, or investments, understanding how CGT works can help you reduce your tax bill and stay compliant with HMRC regulations.

In this guide, we’ll cover:

✅ What is Capital Gains Tax?

✅ Who needs to pay CGT?

✅ Capital Gains Tax rates for 2024

✅ How to calculate CGT on different assets

✅ Ways to reduce your CGT bill legally

✅ Deadlines and penalties for late payments

If you’re looking for expert help with your capital gains tax, our tax accountants in Leeds can guide you through the process.

What is Capital Gains Tax?

Capital Gains Tax is a tax on the profit (or gain) you make when selling or disposing of an asset that has increased in value. You only pay CGT on the profit, not the total sale price.

For example, if you bought shares for £10,000 and sold them for £15,000, your capital gain is £5,000.

CGT applies to various assets, including:

🔹 Property (excluding your main home)

🔹 Shares & investments

🔹 Cryptocurrency

🔹 Business assets

🔹 Valuable items (art, antiques, jewellery)

Who Pays Capital Gains Tax?

CGT applies to:

✅ Individuals selling taxable assets above the CGT allowance

✅ Investors who sell shares or crypto for a profit

✅ Landlords & second-home owners selling property

✅ Business owners disposing of company assets

You won’t need to pay CGT if:

❌ You’re selling your main residence

❌ You sell personal possessions worth under £6,000

❌ You gift the asset to your spouse or civil partner

❌ Your gains are below the annual CGT allowance

Capital Gains Tax Rates 2024-25

CGT rates depend on your income and the type of asset you’re selling.

Example Calculation

John earns £45,000 per year and sells shares for a £15,000 profit. His CGT allowance is £3,000, so only £12,000 is taxable.

Since his total income after gains is £60,000, he pays:

• £5,270 at 10% = £527
• £6,730 at 20% = £1,346
• Total CGT owed: £1,873

If you need help calculating your CGT liability, try our calculator speak to one of our tax specialists.

How to Calculate Capital Gains Tax

Step 1: Work Out Your Profit

Profit = Sale Price – Purchase Price – Allowable Costs

Allowable costs include:

✅ Estate agent & solicitor fees (for property sales)

✅ Broker fees (for shares)

✅ Home improvement costs (for investment properties)

Step 2: Deduct Your CGT Allowance

The CGT-free allowance for 2024-25 is £3,000.

Step 3: Check Your Income Tax Band

Your income + taxable capital gains determine your CGT rate.

Step 4: Apply CGT Rates

• 10% for basic rate taxpayers
• 20% for higher rate taxpayers
• 18% or 24% for property sales

Ways to Reduce Your Capital Gains Tax Bill

1. Use Your CGT Allowance

Each person gets a £3,000 CGT-free allowance. If possible, spread asset sales across multiple tax years to avoid exceeding it.

2. Offset Losses Against Gains

If you sell an asset at a loss, you can offset that loss against your taxable gains.

3. Transfer Assets to Your Spouse

Transfers between spouses and civil partners are CGT-free.

4. Invest in ISAs or Pensions

Gains inside an ISA or pension are completely tax-free.

5. Claim Private Residence Relief

If you rent out part of your home, you may still be eligible for partial CGT relief.

When to Pay Capital Gains Tax

💰 Deadlines: You must report & pay CGT within 60 days of selling a property. For other assets, CGT is due by 31 January in the following tax year.

🔴 Late payments incur penalties:

• £100 fine if unpaid after 60 days
• Interest charges on overdue tax

Frequently Asked Questions (FAQs)

1. Do I Pay Capital Gains Tax When Selling My House?
In most cases, you won’t pay CGT when selling your main home because it qualifies for Private Residence Relief (PRR).

However, you may have to pay CGT if:
✅ You rent out part of your home (except lodgers)
✅ You use your home for business purposes
✅ You own multiple properties (e.g., second homes, buy-to-let investments)
✅ You sell land separate from your main home

2. Do I Pay Capital Gains Tax on Cryptocurrency?
Yes. HMRC treats crypto assets (e.g., Bitcoin, Ethereum, NFTs) as taxable investments, meaning CGT applies when you sell, exchange, or gift them.

You will need to report gains on crypto if:
✅ You sell crypto for GBP
✅ You swap one crypto for another (e.g., BTC to ETH)
✅ You spend crypto on goods or services
✅ You gift crypto (except to a spouse)

3. How Can I Avoid Paying Capital Gains Tax on My Second Home?
There are legal ways to reduce or eliminate CGT on a second home:

✅ Letting Relief: If you rented out your property, you may be eligible for up to £40,000 CGT relief.
✅ Private Residence Relief (PRR): If you previously lived in the home, you could claim partial PRR relief for the time you lived there.
✅ Gifting to a Spouse: Transfers between spouses & civil partners are CGT-free.
✅ Time Your Sale: CGT is based on the tax year, so selling in a different financial year can help reduce your taxable gains.

4. Do I Pay CGT on Gifts to Family?
It depends on who you gift the asset to:

✅ No CGT if gifted to a spouse or civil partner
❌ CGT applies if given to children, siblings, or friends
✅ No CGT if donating to charity

📌 HMRC calculates CGT as if you “sold” the asset for market value, even if no money was exchanged.

5. Do I Need to Report Capital Gains If I Didn’t Pay Tax?
You must report CGT to HMRC if:
✅ Your total gains exceed the CGT allowance (£3,000 in 2024-25)
✅ You sell an asset worth over £50,000, even if no CGT is owed
✅ You claim capital losses to offset against future gains

How to report CGT:
📌 Online via HMRC’s Capital Gains Tax service
📌 Self-Assessment Tax Return (SA100) if you regularly report CGT

6. What Happens If I Don’t Pay Capital Gains Tax on Time?
CGT must be reported & paid within 60 days for UK property sales and by 31 January in your Self-Assessment for other assets.

❌ Penalties for Late CGT Payments:

£100 fine for missing the deadline
Interest charges on unpaid tax
Further penalties if delayed for over 6 months

7. Can I Offset Capital Losses Against Future Gains?
Yes! If you sell an asset at a loss, you can carry forward losses indefinitely to reduce your CGT bill in future years.

🔹 You must report capital losses to HMRC within 4 years to claim them.

8. How Does CGT Work for Business Owners?
If you sell a business asset, CGT rules differ. You may qualify for Business Asset Disposal Relief (BADR) (formerly Entrepreneurs’ Relief).

✅ BADR reduces CGT to 10% on business asset sales
✅ Available for sole traders, business partners & company directors

Need Help with Capital Gains Tax?

Navigating CGT can be complex, but our expert accountants are here to help.

📞 Contact Ascentis LLP today for tailored tax advice so get in touch today.