Capital Gains Tax rates in the UK: what you’ll pay

Wondering which UK capital gains tax rates apply this tax year? Most gains are taxed at 18% or 24%, with a £3,000 tax-free allowance. If your income for the year is £50,270 or more, all of your gain is taxed at 24%. We break it all down, from reliefs and losses to pension planning and reporting deadlines.

Key takeaways

You pay 18% or 24% Capital Gains Tax (CGT) on most assets, including residential property. Which rate applies depends on your income and the size of your gain.

• What CGT is: a tax on the profit you make when you sell or give away an asset that has gone up in value.
• Who pays it: anyone whose taxable gains are above their allowance.
• Current rates: 18% or 24% for most assets, depending on your income. Business Asset Disposal Relief gains are taxed at 18%, regardless of your income.
• Allowance: £3,000 tax-free for 2026/27 (£1,500 for trusts).

What to do next:

1. Check whether your taxable gain is above £3,000 after any losses.
2. Use our calculator to estimate what you’ll owe.
3. Report and pay on time. For UK residential property, this is within 60 days of completion, if your taxable gain is above £3,000. For other gains, it’s by 31 January after the end of the tax year. For 2026/27 gains, that’s 31 January 2028.

What is Capital Gains Tax?

You may need to pay Capital Gains Tax when you sell or give away an asset that has increased in value. It applies to: 

• Most personal possessions worth £6,000 or more, such as art, antiques and fine jewellery
• Property that isn’t your main home, such as a second home or a buy-to-let
• Shares that aren’t held in an ISA or PEP
• Cryptoassets, such as Bitcoin
• Business assets

You usually don’t pay CGT when you sell your main home. The exceptions are if you’ve let it out, used it for business, or it’s very large.

Some gains are exempt. These include gains on your car, ISAs and PEPs, UK government gilts, Premium Bonds, and betting, lottery or pool winnings.

Capital Gains Tax rates in the UK 

Most gains are taxed at these rates:

• 18% on the part of your gain that falls within your basic rate band
• 24% on any part of your gain above that band

Your CGT rate is based on your total taxable income for the year. If adding your gain pushes you over £50,270, you may pay both rates.

Everyone has a £3,000 tax-free allowance each tax year, so gains up to £3,000 are tax-free. 

Rates by type of asset

Type of asset	Gain within basic rate band	Gain above basic rate band
Shares	18%	24%
Residential property	18%	24%
Bitcoin/Cryptocurrency	18%	24%
Other	18%	24%

These rates apply to gains made in the 2026/27 tax year, which started on 6 April 2026. Most assets have been taxed at 18% and 24% since 30 October 2024. 

Tax-free allowance

Allowance for	Annual exempt amount
Individuals	£3,000
Trusts	£1,500

You can make up to £3,000 in capital gains each year without paying tax. This allowance applies per person, per tax year, and any unused amount can’t be carried forward. 

Most trusts receive £1,500, while trustees of a trust for a disabled person get the full £3,000. 

Married couples and civil partners who live together can transfer assets between themselves free of CGT, which lets both partners use their own allowances. As a couple, this could mean up to £6,000 tax-free.

How pension contributions can reduce your CGT bill

Pension contributions can lower your CGT bill in two ways.

First, if you pay into a personal pension through relief at source, your provider adds basic rate tax relief to your contribution. Your basic rate band then grows by the full gross amount of the contribution. This means more of your gain may be taxed at 18% instead of 24%.

Second, pension contributions reduce your adjusted net income. If your adjusted net income is between £100,000 and £125,140, your Personal Allowance falls by £1 for every £2 above £100,000. Pension contributions can help restore some or all of that allowance. In this range, each extra £1 of income can effectively be taxed at 60%.

Consider someone with a £55,000 salary who makes an £8,000 gain on shares. They pay £10,000 gross into a personal pension: £8,000 from their own money, and £2,000 added by their provider.

• Without a pension contribution: the £5,000 taxable gain (after the £3,000 allowance) sits above the basic rate band, so it’s taxed at 24%. CGT is £1,200.
• With the pension contribution: the basic rate band extends to £47,700. The gain fits within it, so it’s taxed at 18%. CGT is £900.
• CGT saving: £300.

They may also be able to claim higher rate income tax relief on the contribution. In this example, that’s about £946, claimed through Self Assessment. 

If your income is close to £100,000, read our 60% tax trap guide and our guide for people earning over £100k. 

Our accountants can model this for you. Book a consultation.

Business asset disposal relief

If you sell all or part of your business, you pay Capital Gains Tax on the gain. Business Asset Disposal Relief, formerly known as Entrepreneurs’ Relief, lowers the rate you pay on those gains.

The rate is 18% for gains made from 6 April 2026. For gains made between 6 April 2025 and 5 April 2026, it was 14%.

To qualify for the relief, you must have owned the business for at least 2 years before the sale. You must also be one of the following:

• A sole trader
• A business partner
• An employee or office holder of a trading company, holding at least 5% of its shares and voting rights (if you’re selling shares)

The relief has a lifetime limit of £1 million of qualifying gains. 

The relief only applies to trading businesses. It doesn’t cover investment property, such as a property you rent out. 

If you want to see how much tax you may owe, use our CGT calculator below.

Reducing your CGT bill: losses and planning

If you sell an asset for less than you paid, you can report the loss to HMRC. These are called allowable losses. Losses are set against gains in the same tax year first. Any losses you don’t use can be carried forward to future tax years. You must claim a loss within 4 years of the end of the tax year in which you sold the asset.

There are some restrictions. You can’t claim an allowable loss if you:

• Sold or given an asset to your spouse or civil partner
• Sold or given an asset to a family member or a connected person, in most cases. Connected people include your brothers, sisters, parents, grandparents, children and grandchildren, their spouses and civil partners, your spouse’s relatives, and business partners
• Sold an exempt asset, such as your car

Some tax-efficient strategies can help you plan ahead:

• Use your £3,000 annual allowance every year, as unused allowance can’t be carried forward.
• Transfer assets to your spouse or civil partner, if you live together, so that both allowances can be used.
• Spread your sales across tax years, where that suits your circumstances.

Not sure how a loss affects your bill? Our UK-qualified accountants can review your situation and explain your options. Book a tax advice consultation. 

Wasting assets

Some assets are exempt from CGT because they have a limited lifespan. These are known as wasting assets. You don’t pay CGT on personal possessions with a lifespan of less than 50 years. Examples include machinery and things like antique clocks or watches.

Your car is also exempt, unless you use it for business. If you’ve used a possession for business, different rules apply, so check before you sell.

When to report capital gains

How and when you report depends on what you sold.

• UK residential property: if your taxable gains are above your £3,000 allowance, you must report and pay within 60 days of completion. Don’t wait for your next Self Assessment return. Late reporting can lead to interest and penalties.
• Other gains: report them on your Self Assessment tax return for the tax year in which you sold the asset. The deadline is 31 January after the end of that tax year. For gains made in 2026/27, the deadline is 31 January 2028. If you’re eligible, you may be able to use the real-time service and report by 31 December in the tax year after the sale.
• Sales below your allowance: if you’re registered for Self Assessment, you must report a sale if your total sale proceeds were more than £50,000 in the tax year, even if your gain is below £3,000. If you’re not a UK resident, you must report all sales of UK property or land, even if you owe no tax.

Records: keep records of what you paid for the asset, what you sold it for, the dates of purchase and sale, and any allowable expenses, such as fees or improvement costs. You need these to work out your gain.

CGT calculator

Not sure how much CGT you’ll owe? Enter your gain and your income into our calculator to see an estimate.

FAQ: Capital Gains Tax rates UK 

How much is capital gains tax in the UK?

For the 2026/27 tax year, most gains are taxed at 18% or 24%, depending on your taxable income. Business Asset Disposal Relief gains are taxed at 18%. The £3,000 allowance is deducted before tax is calculated.

Do I pay CGT if I’m a basic-rate taxpayer?

Yes, if your total gains are above your £3,000 allowance after any losses. The part of your gain that fits within your basic rate band is taxed at 18%, and the rest is taxed at 24%.

Can I avoid CGT by giving an asset away?

Not always. Gifts to your spouse or civil partner who lives with you, and gifts to charity, are usually free of CGT. Gifts to other people are normally treated as sold at market value, so CGT can apply. 

When do I need to report capital gains?

For UK residential property, report and pay within 60 days of completion if your taxable gains are above your allowance. For other gains, report on your Self Assessment tax return by 31 January after the tax year of sale, which is 31 January 2028 for 2026/27 gains.

How does CGT work for jointly owned assets?

You pay CGT only on your share of the gain. For example, if you own half of a property with a partner, you’re taxed on half of the gain.

What’s the difference between CGT and income tax?

Income tax applies to your earnings, pension income and savings interest. CGT applies to the profit you make when you sell or give away an asset. Your income affects your CGT rate, but the two taxes are calculated separately and have different allowances. 

Do I need to report a gain below £3,000?

Usually not, if you’re registered for Self Assessment and your total sale proceeds for the tax year were £50,000 or less. Non-UK residents must still report all sales of UK property or land, even if they owe no tax. 

This article provides general information only and is not personalised tax advice.