GeraCash / UK Capital Gains Tax
UK Capital Gains Tax 2025/26 — rates, allowance & calculator
Capital Gains Tax (CGT) is the tax on the profit when you sell or dispose of an asset — shares, a second home, a buy-to-let or other chargeable property. It is charged at 18% within your basic-rate band and 24% above it, on gains over the £3,000 annual exempt amount.
How much is Capital Gains Tax in the UK?
In 2025/26, UK Capital Gains Tax (CGT) is charged at 18% on gains that fall within your basic-rate Income Tax band and 24% on gains above it. You only pay on total gains above the £3,000 annual exempt amount, and — since 30 October 2024 — the same 18%/24% rates apply to both shares and residential property. For example, a £20,000 gain for someone earning £40,000 works out to about £3,463.80 in CGT (an effective 17.3% of the gain).
The headline figures (2025/26)
Basic-rate CGT
18%
within the basic-rate band
Higher-rate CGT
24%
above the basic-rate band
Annual exempt amount
£3,000
tax-free each year
Capital Gains Tax calculator
Enter your total gain and other taxable income to see the CGT due — it splits the gain across the 18% and 24% bands using HMRC's method.
Profit on the disposal, before the allowance
Salary etc. — decides the 18% vs 24% split
Total CGT due
£3,463.80
17.32% of the gain
Taxable gain
£17,000.00
after the £3,000.00 allowance
Gain after CGT
£16,536.20
what you keep
Uses HMRC's method: your gain (after the £3,000.00 annual exempt amount) is added on top of your taxable income — the part still inside the basic-rate band is taxed at 18%, the rest at 24%. Information only, not tax advice. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount.
Capital Gains Tax rates
| Where the gain falls | CGT rate | Applies to |
|---|---|---|
| Within the basic-rate band | 18% | Gain (after allowance) that keeps your total income + gains at or below £50,270 |
| Above the basic-rate band | 24% | Gain that takes you above £50,270 (higher & additional-rate taxpayers) |
Since 30 October 2024 the same 18%/24% rates apply to shares and residential property. Trustees and personal representatives pay a flat 24%. This page is information, not tax advice.
Capital Gains Tax explained
UK Capital Gains Tax rates
How the 18% and 24% Capital Gains Tax rates work, and how HMRC decides which one applies to your gain.
Capital Gains Tax allowance (annual exempt amount)
The £3,000 tax-free Capital Gains Tax allowance every individual gets each year, and how it reduces the gain you pay tax on.
Capital Gains Tax on property
How Capital Gains Tax applies to second homes and buy-to-let, why your main home is usually exempt, and the 18%/24% residential rates.
Capital Gains Tax on shares
How Capital Gains Tax applies to shares and funds, the 18%/24% rates, and why ISA and pension holdings are exempt.
Frequently asked questions
- What are the UK Capital Gains Tax rates for 2025/26?
- Capital Gains Tax is charged at 18% where the gain falls within your basic-rate Income Tax band and 24% on the portion above it. Since 30 October 2024 these same rates apply to shares and residential property alike. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount.
- What is the Capital Gains Tax allowance?
- Every individual has an annual exempt amount of £3,000 for 2025/26. You only pay CGT on total gains above this figure in a tax year; the allowance cannot be carried forward if unused.
- How is it decided whether I pay 18% or 24%?
- HMRC stacks your gain on top of your taxable income. First subtract the £3,000 allowance. Any of the remaining gain that still fits inside the basic-rate band (total income and gains up to £50,270) is taxed at 18%; anything above that is taxed at 24%. The Personal Allowance is £12,570.
- How much CGT would I pay on a £20,000 gain?
- On a £20,000 gain with £40,000 of other taxable income: after the £3,000 allowance the taxable gain is £17,000.00; £10,270.00 of it is taxed at 18% (£1,848.60) and £6,730.00 at 24% (£1,615.20), for total CGT of £3,463.80. That leaves £16,536.20 of the gain after tax. Use the calculator for your own figures.
- Do I pay Capital Gains Tax when I sell my home?
- Usually no. Your main residence normally qualifies for Private Residence Relief, so a gain on the home you live in is generally exempt. CGT typically applies to second homes, buy-to-let and other property that is not your only or main home. See the property page for detail.
- Are shares in an ISA or pension subject to CGT?
- No. Gains on investments held inside a Stocks and Shares ISA or a pension are free of Capital Gains Tax. CGT applies to shares and funds held outside those wrappers, above the £3,000 annual exempt amount.
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Data source
Contains public sector information published by HM Revenue & Customs and licensed under the Open Government Licence v3.0. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount (Tax year 2025/26).
Rates and thresholds from GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount. Retrieved 2026-07-01. Calculations performed by Gera from the published HMRC rates — no figures are estimated.
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