Capital Gains Tax rates
Capital Gains Tax applies to the profit (gain) when you sell or give away certain assets. Rates and the annual exempt amount reflect the changes made at Autumn Budget 2024 and Autumn Budget 2025.
Rates for individuals
| Your situation | Rate on gains from 6 April 2026 |
|---|---|
| Basic rate taxpayer (gain falls within the basic rate band) | 18% |
| Higher or additional rate taxpayer | 24% |
| Gains qualifying for Business Asset Disposal Relief | 18% |
| Trustees and personal representatives | 24% |
- The rate you pay depends on the size of your gain added to your taxable income: 18% on the part within the basic rate band (£37,700) and 24% above it.
- The annual exempt amount is £3,000 per person (£1,500 for most trusts). Gains below this are tax-free but must still be reported if you make larger disposals.
- From 6 April 2026, carried interest is charged to Income Tax instead of Capital Gains Tax.
Worked example (from GOV.UK)
Taxable income of £20,000 and taxable gains of £12,600. After the £3,000 exempt amount, £9,600 is taxable. Added to £20,000 income that is £29,600, within the £37,700 basic rate band, so 18% applies: £1,728 tax.
Common questions
How much is the annual exempt amount?
£3,000 per person (£1,500 for most trusts), unchanged since 2024/25.
What rate applies to business disposals?
Business Asset Disposal Relief gains are taxed at 18% from 6 April 2026, within the £1m lifetime limit.
Do I pay CGT when I sell my home?
Usually not, if it is your main home and you qualify for Private Residence Relief. Second homes and buy-to-let properties can be taxable, and gains must be reported to HMRC within 60 days of completion.
Figures from Capital Gains Tax rates . For guidance only, not tax advice. Always check current HMRC guidance.
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