IN PLAIN ENGLISH
The net gains you can realise each tax year before Capital Gains Tax applies.
WHERE YOU MEET IT
The Tax Year widget sets the year's net gains against it.
WATCH OUT FOR
It can't be carried forward, and it has been cut sharply in recent years. Check GOV.UK.
EXAMPLE
At 2026/27 rates, £8,000 of net gains less the £3,000 annual exempt amount leaves £5,000: £900 at 18%, or £1,200 at 24%.
HOW IT'S CALCULATED
Allowance used = the smaller of Net Capital Gains and the year's annual exempt amount. The rest is taxed at the lower Capital Gains Tax rate where it fits within what's left of your basic-rate band after your income, and at the higher rate above it; with your band picked instead, at the lower rate for basic rate and the higher rate otherwise. A net loss means no Capital Gains Tax for the year.
EXPLAINED IN
Educational content only. It is not personal financial advice.