Dividend Calculator

A comprehensive capital gains calculator takes into account crucial UK-specific factors, including your tax-free allowance (currently £6,000 for the 2023/24 tax year), your income tax band, and any available reliefs or losses that can be offset against your gains. By inputting details such as your purchase price, selling price, and associated costs, you can quickly determine your taxable gain and understand your potential tax liability before making any financial decisions.

The UK’s capital gains tax system has become increasingly complex, with different rates applying to different types of assets and circumstances. For basic rate taxpayers, capital gains tax is charged at 10% on most assets and 18% on residential property, while higher rate taxpayers pay 20% and 28% respectively. Understanding these nuances is crucial for effective tax planning. For example, if you bought shares for £20,000 and sold them for £30,000, your capital gain would be £10,000 before considering any deductions or reliefs. A capital gains calculator helps you factor in allowable costs such as broker fees, stamp duty, and improvement expenses for property, ensuring you don’t pay more tax than necessary. This becomes particularly valuable when managing multiple disposals across the tax year or when considering strategies like bed and breakfasting or using your annual exemption efficiently.