Capital Gains Tax calculator.
Use our Capital Gains Tax (CGT) calculator to estimate how much tax you could owe and your potential net profits after tax for an individual with a CGT allowance of £3,000 per tax year.
Remember, you can avoid paying any CGT by investing with a Stocks and Shares ISA up to the annual allowance. CGT only applies to investments outside of an ISA, e.g. when you invest with a General Investment Account.
This calculator is for illustrative purposes and is an estimation, It does not account for all possible tax scenarios and does not constitute tax advice.
For professional guidance specific to your circumstances, please consult a qualified adviser.
-
-
Seccl Custody Limited is the ISA Manager for the Chip Stocks & Shares ISA. Fund management charges apply. ISA limits apply. Invest £20k per tax year1.
What is Capital Gains Tax (CGT)?
Capital Gains Tax (CGT) is a tax you pay on the profit when you sell or dispose of an asset that has increased in value. It’s not the total amount you receive from the sale, it’s the gain you make that is taxed. Common assets that may be subject to CGT include:
Property (that isn’t your main home)
Shares and investments
Business assets
Valuable personal items like art or jewellery
If your total gains for the tax year exceed your annual CGT allowance, you’ll need to pay tax on the profit.
How is Capital Gains Tax calculated?
The basic CGT calculation is:
CGT = (sale price - purchase price - allowable costs - annual allowance) x tax rate
Sale price: The amount you sold the asset for
Purchase price: The original cost of the asset
Allowable costs: Expenses related to buying, improving, or selling the asset (e.g. legal fees, stamp duty, estate agent fees, or renovation costs)
Annual allowance: The tax-free allowance you get each year
Tax rate: Depends on your income tax band and the type of asset sold
Example calculation of Capital Gains Tax
Let’s say you made an initial investment of £200,000 and later sold your shares for £300,000.
Sale price: £300,000
Initial investment price: £200,000
Allowable costs (investment fees, management fees): £5,000
Gain = £300,000 - £200,000 - £5,000 = £95,000
Next, subtract the annual CGT allowance (e.g. £3,000): £95,000 - £3,000 = £92,000
Now apply the tax rate for your investment:
Basic-rate taxpayers pay 18%
Higher/additional-rate taxpayers pay 24%
If you're a higher-rate taxpayer:
CGT = £92,000 x 24% = £22,080 owed
Why you use a Capital Gains Tax calculator?
Working out capital gains tax can be complicated because:
Different assets have different tax rules.
Rates vary depending on whether you’re a basic rate or a higher/additional rate taxpayer.
Certain reliefs and exemptions (like Private Residence Relief or Business Asset Disposal Relief) may apply.
