Guide

Capital Gains Tax Worked Examples UK 2026/27

Written by James Whitfield · Last checked 19 October 2026 Every figure recalculated with our 2026/27 calculator

Quick answer

Every UK CGT calculation follows the same order: sale price, less the cost and allowable costs, less losses, less the £3,000 annual exempt amount,² then 18% on the part that fits in your unused basic-rate band and 24% on the rest.¹ The six examples below run that order on shares, a buy-to-let, losses, an inherited house and a former home, with 2026/27 figures.

The 2026/27 figures used

Annual exempt amount: £3,000 per person.²
CGT rates: 18% within the basic-rate band, 24% above it, for property, shares and crypto alike.¹
Basic-rate band: £37,700 of taxable income (£12,570 personal allowance, basic rate to £50,270).³
Your gain sits on top of your taxable income, so only the unused part of the band is taxed at 18%.¹
Figures checked 19 October 2026, before the Autumn Budget on 28 October 2026. We will update this page if the Budget changes them.

Example 1: selling a fund as a higher-rate taxpayer

Aisha earns £60,000. She sells a fund in her general investment account for £30,000, paying £50 in dealing fees. Her Section 104 pool cost for the units sold is £18,000.⁴

Aisha, shares, 2026/27

Sale price less £50 fees, less pool cost £18,000	£11,950
Less annual exempt amount	−£3,000
Taxable gain	£8,950
CGT: 24% × £8,950	£2,148

Her income already uses the whole basic-rate band, so all of the taxable gain is at 24%. Pay by 31 January 2028.

Example 2: a basic-rate taxpayer whose gain crosses the band

Ben earns £35,000, so his taxable income is £22,430 (£35,000 − £12,570) and £15,270 of the £37,700 band is unused.³ He sells shares for £40,000 that cost £15,000.

Ben, shares, 2026/27

Gain: £40,000 − £15,000	£25,000
Less annual exempt amount	−£3,000
18% on £15,270 (unused basic-rate band)	£2,748.60
24% on the remaining £6,730	£1,615.20
CGT	£4,363.80

"Basic-rate taxpayer" does not mean all of a gain is at 18%. See CGT for basic-rate taxpayers, and how pension contributions and Gift Aid widen the band.

Example 3: a buy-to-let with buying costs and an extension

Chris earns £70,000. He bought a flat in 2012 for £180,000, paying £4,500 in Stamp Duty and legal fees, and later spent £20,000 on an extension. He sells it for £320,000 with £5,500 of estate agent and legal fees. Buying and selling costs and improvements such as an extension are deductible; normal maintenance such as decorating is not.⁵

Chris, buy-to-let, 2026/27

Sale price	£320,000
Less purchase price, buying costs, extension and selling costs	−£210,000
Gain	£110,000
Less annual exempt amount	−£3,000
CGT: 24% × £107,000	£25,680

UK residential property: Chris must report and pay within 60 days of completion.⁹ More on deductions in CGT allowable costs.

Example 4: using this year's and earlier losses

Dee, a higher-rate taxpayer, makes a £14,000 gain on crypto and a £4,000 loss on shares in 2026/27. She also has a £10,000 loss from 2024/25 that she reported to HMRC. Same-year losses come off first, in full; earlier losses are only used to bring the gain down to the allowance, and the rest carries forward.⁶

Dee, losses, 2026/27

Crypto gain less same-year share loss	£10,000
Less brought-forward loss, only down to £3,000	−£7,000
Less annual exempt amount	−£3,000
CGT	£0

£3,000 of the 2024/25 loss is left to carry forward. Without the earlier loss Dee would have paid 24% × £7,000 = £1,680. See how to claim a capital loss.

Example 5: selling an inherited house

Ella inherited her mother's house; it was valued at £250,000 for Inheritance Tax. Assets passing on death are treated as acquired at their market value at the date of death, and a value agreed for Inheritance Tax is used as the CGT cost.⁷ She sells for £268,000 with £4,200 of selling costs. Her taxable income is £20,000, leaving £17,700 of basic-rate band.

Ella, inherited house, 2026/27

£268,000 − £4,200 − £250,000	£13,800
Less annual exempt amount	−£3,000
CGT: 18% × £10,800 (all inside the band)	£1,944

What her mother paid decades ago does not matter. Ella has tax to pay on UK residential property, so the 60-day rule applies.⁹ See CGT on inherited property.

Example 6: a former home, let after moving out

Faisal owned a house for 10 years (120 months), lived in it for the first 6 years, then let the whole house for 4 years before selling. His gain after costs is £90,000 and he earns £60,000. The months he lived there and the final 9 months qualify for Private Residence Relief.⁸

Faisal, former home, 2026/27

Qualifying months: 72 lived + final 9	81 of 120
Private Residence Relief: £90,000 × 81 ÷ 120	−£60,750
Chargeable gain	£29,250
Less annual exempt amount	−£3,000
CGT: 24% × £26,250	£6,300

No Letting Relief: he did not live there at the same time as the tenants. See Private Residence Relief and CGT on a former home.

What do the six examples have in common?

The £3,000 allowance is per person per tax year and covers all your gains together, so a second sale in the same year gets no fresh allowance.²
The rate depends on your taxable income that year, not on the asset: shares, crypto and property all use 18% and 24%.¹
UK residential property has its own deadline: 60 days from completion when there is tax to pay.⁹ Everything else is paid by 31 January after the tax year, 31 January 2028 for 2026/27.

Run your own figures

Enter your sale, costs, losses and income to see the same steps for your gain.

Open the CGT calculator

Frequently asked questions

How do you calculate capital gains tax in the UK?

Take the sale price, deduct the cost and allowable buying, selling and improvement costs, deduct any losses, then the £3,000 annual exempt amount. Tax the rest at 18% for the part that fits in your unused basic-rate band and 24% above it.

How much CGT does a basic-rate taxpayer pay?

18% only on the part of the gain that fits in the unused basic-rate band. With a £35,000 salary, £15,270 of the band is left, so a £22,000 taxable gain is taxed £15,270 at 18% and £6,730 at 24%, £4,363.80 in total.

How much CGT is due on a £110,000 buy-to-let gain?

For a higher-rate taxpayer with no other gains, 24% of £107,000 after the £3,000 allowance, which is £25,680, reported and paid within 60 days of completion.

Is the annual exempt amount used before losses?

Same-year losses are deducted in full first. Losses brought forward from earlier years are only used to bring your gains down to the £3,000 allowance, so the allowance is not wasted.

What is the cost of an inherited asset for CGT?

Its market value at the date of death, using the value agreed for Inheritance Tax where there is one, not what the person who died originally paid.

This page is general information, not tax advice. The examples are simplified; your own costs, reliefs and income will change the result.

Sources & references

The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.

Verified against published HMRC and GOV.UK guidance.