Capital Gains Tax on Shares Calculator (UK)
Selling shares, ETFs, or investment funds held outside tax-efficient wrappers triggers Capital Gains Tax on any profit you make. The annual exemption is now just £3,000.
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A common mistake is assuming you only pay CGT when you make a large profit. Even modest gains above the £3,000 threshold are taxable. Another oversight is not using the share identification rules correctly.
Knowing your potential capital gains tax liability before selling helps you time disposals and use your annual exemption strategically. Enter your investment details below to estimate your tax bill.
Share Sale Details
Include all shares sold in this tax year
For reference only - enter totals above
Trading fees, stamp duty on purchase, professional advice
ISA and pension holdings are CGT-free
Your CGT Estimate
When CGT Applies to Shares
Capital Gains Tax applies when you sell shares, ETFs, investment trusts, or funds held in a general investment account (GIA) for more than you paid for them. The key word is 'sell' – you don't pay CGT on paper gains while you still hold the investment.
CGT Applies To
- • Shares in UK and overseas companies
- • ETFs (Exchange Traded Funds)
- • Investment trusts
- • Unit trusts and OEICs
- • Bonds (corporate and government)
- • Cryptocurrency (treated as assets)
CGT-Free Investments
- • Stocks & Shares ISA holdings
- • Pension investments (SIPP, workplace)
- • Premium Bonds prizes
- • Gilts (UK government bonds)
- • Qualifying corporate bonds
- • Transfers to spouse/civil partner
CGT Rates for Investments
CGT rates on shares and investments are lower than rates on property. However, rates are changing significantly from April 2025 as part of the Autumn 2024 Budget.
| Tax Year | Annual Allowance | Basic Rate | Higher/Additional Rate |
|---|---|---|---|
| 2026/27 | £3,000 | 18% | 24% |
| 2024/25 | £3,000 | 10% | 20% |
| 2023/24 | £6,000 | 10% | 20% |
| 2022/23 | £12,300 | 10% | 20% |
Note: Your income band is determined by your total taxable income, not your capital gains. If your income plus gains pushes you into a higher band, the excess is taxed at the higher rate.
How Allowances Work
The annual CGT allowance lets you make tax-free gains up to a certain amount each tax year. Understanding how to use it effectively can significantly reduce your tax bill.
Use It or Lose It
Your annual allowance doesn't roll over. If you don't use it by 5 April, it's gone. Consider crystallising gains each year up to your allowance limit.
Couples Can Double Up
Transfers between spouses are CGT-free. This means a couple can effectively use £6,000 of allowances in 2026/27 by transferring assets before sale.
Offset Losses
Capital losses can offset gains in the same year, or be carried forward indefinitely. You must report losses within 4 years to claim them.
How ISAs Avoid CGT
Stocks & Shares ISAs are one of the most powerful tax shelters available to UK investors. All gains within an ISA are completely exempt from CGT, regardless of how large they grow.
ISA Tax Benefits
- • No CGT – Sell investments tax-free, no matter how much profit
- • No dividend tax – All dividends received tax-free
- • No reporting – No need to include ISA gains on your tax return
- • £20,000 annual limit – Contribute up to £20,000 per tax year
- • No lifetime limit – ISA holdings can grow indefinitely tax-free
If you hold investments outside an ISA, consider using your annual ISA allowance to shelter future gains. While you can't directly transfer existing shares into an ISA (known as "bed and ISA"), you can sell and rebuy within an ISA – though this may trigger CGT on the sale.
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