GeraCash / UK Capital Gains Tax / CGT allowance
Capital Gains Tax allowance 2025/26 — the £3,000 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.
What is the Capital Gains Tax allowance for 2025/26?
The Capital Gains Tax allowance — officially the annual exempt amount — is £3,000 per individual for 2025/26. You pay CGT only on total gains above this figure in a tax year; gains up to £3,000 are tax-free.
The annual exempt amount is deducted from your total gains for the year before any tax is worked out. If your combined gains are £3,000 or less, there is no CGT to pay. The allowance is per person, so a couple who each own a share of an asset can each use their own £3,000.
The allowance cannot be carried forward — if you do not use it in a tax year, it is lost. It has been cut sharply in recent years, which means more disposals now produce a taxable gain than in the past.
After the allowance, the remaining gain is taxed at 18% or 24% depending on your income (see the rates page). Example: a £20,000 gain becomes a £17,000.00 taxable gain once the £3,000 allowance is applied.
This page is information, not tax advice. Figures are the published HMRC rates for 2025/26.
Capital Gains Tax calculator
Enter your gain and other income to see the CGT due across the 18% and 24% bands.
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.
Frequently asked questions
- How much is the Capital Gains Tax allowance for 2025/26?
- £3,000 per individual. You only pay CGT on total gains above £3,000 in the tax year. Source: GOV.UK / HMRC — Capital Gains Tax: rates and annual exempt amount.
- Can my partner and I both use the allowance?
- Yes. The £3,000 annual exempt amount is per person, so jointly-owned assets can benefit from two allowances. Transfers between spouses/civil partners are normally made without triggering CGT.
- Can I carry forward an unused CGT allowance?
- No. If you do not use the £3,000 allowance in a tax year it cannot be carried forward — it simply resets the next year.
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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 by Gera from the published HMRC rates — no figures are estimated.
More on Capital Gains Tax
- 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 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.