After Tax Investment Calculator
Estimate tax on a selected annual investment gain or income using a chosen tax band and remaining allowance. Compare a taxable holding with an ISA.
2026/27 estimate
Investment income and gain estimate
A selected-band estimate, not a full tax return calculation. It applies one tax rate to the amount above the allowance you enter.
Gross annual amount
£2,500.00
Tax estimate
£0.00
Net annual amount
£2,500.00
Net yield on investment
5.00%
Default remaining allowances: savings Personal Savings Allowance £1,000/£500/£0 by selected band; dividend allowance £500; Capital Gains Tax annual exempt amount £3,000. You can edit the remaining allowance. Rates used: savings income 20%/40%/45%, dividends 10.75%/35.75%/39.35%, and gains 18%/24%/24%. ISA returns are treated as tax-free. No National Insurance is included. Assumes the whole taxable amount falls in your selected band; it does not model other income, the Starting Rate for Savings, allowance tapering, Scottish Income Tax, losses, asset-specific CGT rates or interactions across bands. The yield result is an annualised simple estimate, not a forecast.
How Investment Returns Are Taxed in the UK (2026/27)
When investing outside tax-exempt wrappers in the United Kingdom, your investment growth is subject to two distinct statutory tax regimes: Capital Gains Tax (CGT) under the Taxation of Chargeable Gains Act 1992 (TCGA 1992), and Dividend Tax under Part 2 of the Income Tax Act 2007 (ITA 2007).
Recent legislative changes under the Finance Acts 2023–2025 have substantially reduced annual exemptions, cutting the annual CGT exempt amount to £3,000 and the tax-free Dividend Allowance to £500, significantly increasing the tax exposure of unsheltered General Investment Accounts (GIAs):
Capital Gains Tax (CGT)
Applies when selling or disposing of shares, ETFs, investment trusts, or real property. Under Section 1K of TCGA 1992, the annual exempt amount is £3,000. For this simplified estimate, gains above £3,000 use 18% for a basic-rate taxpayer or 24% for a higher- or additional-rate taxpayer. Different asset types may have different CGT rates.
Dividend Tax
Applies to dividend distributions from equities and collective equity funds. The annual tax-free Dividend Allowance is £500 under Section 13 of ITA 2007. Dividends above £500 are taxed at 10.75% (basic rate), 35.75% (higher rate), and 39.35% (additional rate).
Capital Gains & Dividend Tax Rates by Income Band (2026/27)
| Taxpayer Band | CGT Exemption | Shares & Funds CGT | Property CGT | Dividend Rate |
|---|---|---|---|---|
| Basic Rate Taxpayer | £3,000 | 18% CGT | 18% CGT | 10.75% |
| Higher Rate Taxpayer | £3,000 | 24% CGT | 24% CGT | 35.75% |
| Additional Rate Taxpayer | £3,000 | 24% CGT | 24% CGT | 39.35% |
Spousal CGT Exemption & The 30-Day Anti-Avoidance Rule
Under Section 58 of the Taxation of Chargeable Gains Act 1992, capital assets can be transferred between legally married spouses or civil partners on a statutory “no gain, no loss”basis. This enables a couple to use both spouses' annual exemptions, effectively providing a combined £6,000 tax-free CGT allowance and £1,000 in tax-free dividend distributions each tax year.
However, UK investors must navigate the statutory 30-day Bed & Breakfasting rule set out in Section 106A of TCGA 1992. If you sell shares to realise a gain or loss and repurchase identical securities within 30 days, the repurchase is matched against the original sale for tax calculations, neutralizing the CGT allowance. To successfully reset your base cost, you must either wait 31 days or repurchase the asset inside an exempt ISA or SIPP.
Stocks & Shares ISA: Complete Tax Immunity
Under the Individual Savings Account Regulations 1998 (SI 1998/1870), investing through a Stocks & Shares ISA grants 100% statutory immunity from Capital Gains Tax and Dividend Tax. You can deposit up to £20,000 per tax year, completely eliminating the need to report trades, dividends, or portfolio rebalancing on your Self-Assessment return.
Frequently Asked Questions: UK Investment Taxes
Clear answers based on official HMRC rules and statutory guidance.
Authored and verified by UK investment tax specialists in accordance with the Taxation of Chargeable Gains Act 1992 (Section 1K), Income Tax Act 2007 (Section 13), and Individual Savings Account Regulations 1998 (SI 1998/1870). Calculations reflect the 2026/27 tax year.
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Choose the income type and whether it is inside a valid ISA or pension wrapper. A selected tax-band illustration does not calculate every interaction with your other income.
The starting rate for savings, Personal Savings Allowance and dividend allowance have different rules. Selling an investment can create a capital gain; withdrawing your own capital is not automatically taxable income.
Check the rules for your circumstances
Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.