Work out the capital gain on a disposal and the tax due after allowances and losses.
Acquisition and disposal costs are deductible, and the annual allowance is applied before the rate. That is why the effective rate on the gross gain is always below the statutory rate. Spreading disposals across tax years to use more than one annual allowance is one of the simplest legitimate ways to reduce a capital gains bill.
Capital Gains
Taxable gain = proceeds − cost − costs of sale − annual allowance; tax = taxable gain × rate
Taxable gain = proceeds − cost − costs of sale − annual allowance; tax = taxable gain × rate Acquisition and disposal costs are deductible, and the annual allowance is applied before the rate. That is why the effective rate on the gross gain is always below the statutory rate.
Spreading disposals across tax years to use more than one annual allowance is one of the simplest legitimate ways to reduce a capital gains bill.
This calculator takes 5 inputs: Sale proceeds, Original cost, Costs of purchase and sale, Tax-free allowance, Capital gains tax rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.