UK Tax Calculators 2026/27 — CGT, Inheritance Tax and Rental Income

Free UK tax calculators for 2026/27: capital gains tax on property and shares, inheritance tax on estates, rental income tax, and pension drawdown costs.

Tax calculations can be complex — especially for less common situations like property disposals, inherited estates, investment portfolios, and pension withdrawals. This hub brings together the calculators and guides that help you estimate your tax position for the four most important non-PAYE tax situations in the UK: capital gains, inheritance, rental income, and pension drawdown.

All figures are based on 2026/27 rates. Tax rules can change — verify at gov.uk before making decisions, and consider consulting a qualified tax adviser for complex situations.

For general take-home pay and employment tax, see the Take-Home Pay Hub or the Calculators Anchor Hub.

Capital gains tax calculators

Capital gains tax applies when you sell or dispose of an asset for more than you paid for it. The most common triggers are property sales (particularly second homes, buy-to-let properties, or inherited properties), share sales, and business asset disposals.

Key CGT facts for 2026/27

Rate Asset type Taxpayer
18% Residential property Basic rate taxpayer
24% Residential property Higher/additional rate taxpayer
18% Other assets (shares, etc.) Basic rate taxpayer
24% Other assets Higher/additional rate taxpayer
10% Business assets (BADR) All (qualifying disposals)

Annual CGT allowance: £3,000 (2026/27)

Calculators and guides

Common CGT scenarios

Selling a buy-to-let property: Report and pay CGT on residential property within 60 days of completion using the HMRC online service. You cannot defer payment until your self-assessment return.

Selling inherited property: Your CGT base cost is the probate value (market value at date of death), not the original purchase price. Gains above probate value are taxable.

Shares and ISAs: Gains within an ISA are exempt from CGT. Gains on shares held outside an ISA are taxable above the £3,000 annual allowance.

Inheritance tax calculators

Inheritance tax is paid on estates worth more than the nil-rate band. Planning can reduce or eliminate the liability significantly — but requires action before death.

Key IHT thresholds for 2026/27

Allowance Amount Conditions
Nil-rate band £325,000 Applies to all estates
Residence Nil-Rate Band (RNRB) Up to £175,000 Must leave home to direct descendants
Combined (single person) Up to £500,000 RNRB applies
Combined (married couple) Up to £1,000,000 Full transferable allowances
IHT rate above threshold 40% Standard rate
Charitable giving rate 36% If 10%+ of net estate left to charity

April 2027 change: Unspent pension pots will be included in the estate for IHT purposes from April 2027. This significantly changes pension drawdown strategy for many people.

Calculators and guides

Rental income tax calculators

UK landlords pay income tax on net rental profits. Since the Section 24 changes were fully phased in from 2020/21, mortgage interest is no longer fully deductible — instead landlords receive a 20% tax credit.

How rental income tax is calculated

Gross rental income minus allowable expenses (letting fees, insurance, repairs, legal costs) = Net rental profit Add to other income to determine marginal rate Minus mortgage interest tax credit (20% of finance costs) = Tax payable

Key allowable expenses

Expense Deductible?
Letting agent fees Yes
Landlord insurance Yes
Repairs and maintenance Yes
Improvements (e.g., new extension) No (may qualify for CGT relief on disposal)
Mortgage interest No (20% tax credit instead)
Legal and professional fees Yes
Furniture (furnished properties) Replacement only (Replacement of Domestic Items relief)

Calculators and guides

Pension drawdown tax calculators

Pension drawdown — taking money from a defined contribution pension pot — triggers income tax on most withdrawals. The strategy with which you draw down can save tens of thousands in tax over a retirement.

How pension drawdown is taxed

  • First 25% of your pension pot is available as a tax-free lump sum (Pension Commencement Lump Sum or PCLS), subject to a £268,275 lifetime limit
  • All further withdrawals are taxed as income at your marginal rate
  • Withdrawals stack on top of other income — including the State Pension, rental income, employment income if you continue working

Tax-efficient drawdown principles

Use your personal allowance each year: If your only income is pension drawdown, the first £12,570 (2026/27) is tax-free. Taking £12,570/year from drawdown costs no income tax.

Avoid higher rate: Taking large lump sums pushes income over £50,270, triggering 40% tax. Spreading withdrawals over multiple years is almost always more efficient.

Coordinate with State Pension: The full new State Pension (£11,502 in 2025/26) uses most of the personal allowance. Additional drawdown income above £12,570 will be taxed at 20%+.

April 2027 — unspent pots and IHT: If you plan to pass on your pension pot, the rules change significantly from April 2027. Beneficiaries will pay income tax on inherited pension withdrawals. This changes the calculus for people who have been deliberately preserving pension pots as an IHT-efficient legacy vehicle.

Calculators and guides

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