Capital gains tax calculator
Important information - Information is correct as at 17 March 2023 and is based on the rates and allowances for individual investors which apply to the tax years shown. It assumes no other taxable gains are made, no allowable losses are carried forward from previous years and does not take into account reliefs such as Business Asset Disposal Relief. It does not cover capital gains from property. Tax rules can change and benefits depend on your circumstances.
This calculator is not personal advice and should not be relied on for settling a tax bill, for help with calculations please ask an accountant. If you’d like to understand the impact of Capital Gains Tax and how to potentially save tax, speak to our advisers.
What is Capital Gains Tax?
Capital Gains Tax (CGT) can be due when you sell something that’s increased in value, or you transfer it outside of your estate, e.g. to another person or into a trust. It can apply when selling or transferring lots of different assets, for example shares or property.
How could Capital Gains Tax changes affect tax bills? Find out in seconds with this calculator
Moving investments into an ISA or pension this tax year shelters investments from tax in future years. Investments held within these accounts can grow free from Capital Gains Tax. With a pension you could also get tax relief on your contributions, subject to annual limits. Please note that you may generate a taxable gain in the tax year investments are moved.
Find out more about the HL Stocks and Shares ISA
Find out more about the HL Self-Invested Personal Pension
You’ll usually need to be at least 55 (rising to 57 from 2028) before you can access the money in your pension. Pension and tax rules can change and any benefits will depend on your circumstances.
How to move shares to an ISA or Pension
How is Capital Gains Tax calculated?
Each tax year you can make a set amount in capital gains before paying any tax – this is known as the ‘annual exempt amount’, or more simply your ‘CGT allowance’. Last tax year the CGT allowance was £12,300 but it has been cut to £6,000 this tax year. From April 2024 it is being cut further to £3,000 and could change again in the future.
You only pay tax on any gain over your allowance each tax year. For example, if you made a £15,000 gain in the current tax year, you’ll pay tax on a gain of £9,000.
The amount you pay in CGT depends on what you’re selling and the income tax band you fall into.
Capital Gains Tax calculations
| Income tax band | Investments | Property |
|---|---|---|
| Basic rate | 10% | 18% |
| Higher rate | 20% | 28% |
| Additional rate | 20% | 28% |
Scottish taxpayers should use the ‘rest of UK’ tax bands to determine the rate at which they will pay CGT.
If you don’t use your allowance in a tax year, you can’t roll it over to the next tax year.
How can I reduce my Capital Gains Tax bill?
If you make any losses you can use them to reduce any gains made in the same tax year. If you make more losses in a year than gains you should report them, as they can be carried forward to reduce gains in future years. If you have forgotten to report losses, you can claim them up to 4 years after the end of the tax year in which the losses were incurred.
You can transfer investments to a spouse or civil partner free of Capital Gains Tax.
If you’re investing in shares or funds, you can shelter any gains from CGT by investing through an ISA, such as the HL Stocks and Shares ISA, or a pension, such as the HL Self-Invested Personal Pension (SIPP). Any gains within these accounts do not incur CGT.
However please bear in mind that a pension is meant for your retirement, so you can’t normally access your money until you’re 55 (57 from 2028).
Where can I get help and support with Capital Gains Tax?
To learn more about CGT, download our jargon-free guide.
Financial advice
If you’d like expert advice, our highly qualified financial advisers are on hand to help make sure you’re investing tax-efficiently. We can advise you on how to make use of your tax allowances but if you need complex tax calculations, we recommend consulting an accountant.