Pick your gain
Capital gains tax at a glance
| Gain | Taxable after allowance | CGT on £20,000 income | CGT, higher-rate | With BADR at 18% |
|---|---|---|---|---|
| £5,000 gain | £2,000 | £360 | £480 | £360 |
| £10,000 gain | £7,000 | £1,260 | £1,680 | £1,260 |
| £15,000 gain | £12,000 | £2,160 | £2,880 | £2,160 |
| £20,000 gain | £17,000 | £3,060 | £4,080 | £3,060 |
| £25,000 gain | £22,000 | £3,960 | £5,280 | £3,960 |
| £30,000 gain | £27,000 | £4,860 | £6,480 | £4,860 |
| £40,000 gain | £37,000 | £7,064 | £8,880 | £6,660 |
| £50,000 gain | £47,000 | £9,464 | £11,280 | £8,460 |
| £75,000 gain | £72,000 | £15,464 | £17,280 | £12,960 |
| £100,000 gain | £97,000 | £21,464 | £23,280 | £17,460 |
| £150,000 gain | £147,000 | £33,464 | £35,280 | £26,460 |
| £200,000 gain | £197,000 | £45,464 | £47,280 | £35,460 |
| £250,000 gain | £247,000 | £57,464 | £59,280 | £44,460 |
| £300,000 gain | £297,000 | £69,464 | £71,280 | £53,460 |
| £500,000 gain | £497,000 | £117,464 | £119,280 | £89,460 |
| £1,000,000 gain | £997,000 | £237,464 | £239,280 | £179,460 |
2026/27. Annual exempt amount £3,000; rates 18% and 24% for disposals on or after 6 April 2026; basic-rate band £37,700; personal allowance £12,570. The BADR column assumes the whole gain qualifies and none of the £1 million lifetime limit has been used.
How capital gains tax actually works
Capital Gains Tax is charged on the profit when you dispose of an asset, not on what you receive for it. Take the sale price, subtract what you paid and the allowable costs of buying and selling, and what is left is the gain. Subtract the £3,000 annual exempt amount and the balance is chargeable.
The rate then depends on your income, because the gain is stacked on top of it. Whatever remains of the £37,700 basic-rate band once your taxable income has been counted is charged at 18%; anything above it at 24%. A gain large enough to cross that line is charged at both rates at once, which is why a single headline rate is never the whole answer — and why every page in this cluster shows the bill across a range of incomes rather than one number.
Since 30 October 2024 the same two rates apply to residential property and to other chargeable assets. Before that, shares and funds were taxed at 10% and 20% while residential property sat at 18% and 24%; the main rates were raised to match, and the property rates were left unchanged. Plenty of older guidance still quotes the 10% and 20% figures.
Where the deadlines differ
Property is the exception that catches people. A gain on UK residential property must be reported and paid within 60 days of completion. Everything else goes through Self Assessment, or HMRC's real time service where you report by 31 December in the tax year after the gain and pay by 31 January. Our guide to capital gains tax on a second property covers what is deductible from a property gain, and the share matching rules explain how a share gain is worked out when you have bought the same holding repeatedly.
If you are thinking about leaving the UK
Residence changes the answer for most assets, but not all of them: UK land and property stays within the UK net whatever your residence status, and the temporary non-residence rules claw back gains realised during a short spell abroad. Capital gains tax when you leave the UK sets out the tests, and the should I leave the UK calculator puts the capital gains question alongside the income tax side of the same decision.
Frequently asked questions
What are the capital gains tax rates for 2026/27?
18% and 24% for individuals on disposals made on or after 6 April 2026. The 18% rate applies to the part of the gain that fits inside your unused basic-rate band and 24% to the rest. The same two rates apply to residential property and to other chargeable assets such as shares — the main rates rose from 10% and 20% on 30 October 2024 to match the property rates.
How much can I make before paying capital gains tax?
£3,000 for 2026/27 — the annual exempt amount for individuals, the same as 2025/26 and 2024/25, down from £12,300 in 2022/23. It cannot be carried forward, and transfers between spouses or civil partners who live together are outside Capital Gains Tax, so a couple can shelter £6,000 of gains a year between them.
When do I have to pay it?
Within 60 days of completion for a UK residential property — report and payment both. For other assets you can use HMRC's real time service, reporting by 31 December in the tax year after the gain and paying by 31 January, or report it on your Self Assessment return.
Does Business Asset Disposal Relief still exist?
Yes, at 18% for disposals on or after 6 April 2026, up to a £1 million lifetime limit. The rate was 10% up to 5 April 2025 and 14% for 2025/26, so the tax year of the disposal matters.
Work out your own gain, costs and income
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