Dividend and Capital Gains Tax calculator

Work out how much tax you'll pay in 2026/27 on dividends and gains from investments held outside an ISA or pension, whether you need to tell HMRC, and how much an ISA would have saved.

Uses 2026/27 rates and allowances · Figures checked against official sources on 11 October 2026

Total tax from your investments

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None of this applies to investments held in an ISA

Dividend tax

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Capital Gains Tax

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Taxable gain

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after the £3,000 allowance and losses

Extra tax from a smaller Personal Allowance

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dividends over £100,000 of income

How tax on investments is worked out

Investments held in an ISA or a pension aren't taxed as they grow. Outside them, in a general investment account, two taxes usually apply. The calculator works them out in the order HMRC does:

Your other income uses up your Personal Allowance and tax bands first.
Dividends sit on top. The first £500 is taxed at 0%, and the rest at 10.75%, 35.75% or 39.35%, depending on which band it falls in.
Gains come last. After the £3,000 annual exempt amount, the part that fits in what's left of your basic-rate band is taxed at 18%, and the rest at 24%.

Because dividends, including the £500 taxed at 0%, use up band space before gains are counted, a large dividend can push more of a gain into the higher Capital Gains Tax rate. Dividends also count towards the £100,000 income level above which your Personal Allowance shrinks by £1 for every £2, so above that point they raise the tax on your other income too. The calculator shows that separately and includes it in the total.

Worked example for 2026/27

Someone earns £45,000, receives £2,500 of dividends and makes an £8,000 gain selling shares, all outside an ISA. After their Personal Allowance, £32,430 of salary is taxable. The first £500 of dividends is covered by the allowance and the other £2,000 is taxed at 10.75%: £215. Their taxable income is now £34,930, leaving £2,770 of the basic-rate band. After the £3,000 allowance, £5,000 of the gain is taxable: £2,770 at 18% and £2,230 at 24%, which is £1,033.80. In total they pay £1,248.80, none of which would apply to investments held in an ISA (within the £20,000 yearly allowance).

Do you need to tell HMRC?

Dividends up to £500: nothing to report.
Dividends between £500 and £10,000: if you don't already fill in a Self Assessment return, you can ask HMRC to change your tax code or tell them through the income tax helpline, after 5 April and before 5 October.
Dividends over £10,000: you must complete a Self Assessment return.
Gains above £3,000: you must report them, either through HMRC's real-time Capital Gains Tax service (UK residents, by 31 December after the tax year) or on a Self Assessment return. The tax is due by 31 January after the tax year ends.
Sale proceeds over £50,000: if you're in Self Assessment, you must report your disposals even if your gains are within the allowance.

Ways to pay less tax on investments

Use your ISA allowance. Up to £20,000 a year can go into ISAs, where neither tax applies. Our ISA allowance checker shows how much you have left.
Bed and ISA. Selling investments and buying them back inside an ISA moves them out of tax over time. The sale can still create a gain, so spreading it across tax years can make use of each year's £3,000 allowance.
Couples: transfers between spouses or civil partners who live together don't create a gain, so both partners' allowances and bands can be used.
Report losses. Losses must be reported within four years to be carried forward, and they're then used to bring later gains down to the allowance.

What this calculator doesn't include

Savings interest, including interest distributions from bond funds, which is taxed separately and uses your Personal Savings Allowance.
Gains on non-reporting offshore funds, which are taxed as income rather than Capital Gains Tax.
Other gains, such as property, which can have different rules and deadlines.
Pension contributions and Gift Aid. Relief-at-source pension payments and Gift Aid donations extend your basic-rate band, which can move dividends and gains into lower rates.
Scottish bands for dividends and gains. Scottish taxpayers pay Scottish rates on earnings, but dividends and gains use the UK rates and bands shown here. Choosing Scotland only changes the extra tax from a smaller Personal Allowance.

Our guide to tax on investments explains the rules in plain English, including the 30-day rule on selling and buying back shares.

Sources

This calculator gives illustrations based on the figures you enter and the tax rules shown. It isn't personal financial advice. Our guides are general information and education, not personal financial advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.