Tax on the profit when you sell assets like shares, property (not your main home), or valuables. Annual exemption of £3,000 for 2025/26.
How Capital Gains Tax Works in the UK
Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of an asset that has increased in value. For 2025/26, the annual exempt amount is £3,000. Gains above this are taxed at 18% (basic rate taxpayers) or 24% (higher/additional rate) for residential property, and 10% or 20% for other assets.
Common assets subject to CGT include second homes, buy-to-let properties, shares (outside an ISA), cryptocurrency, and valuable personal possessions worth over £6,000. Your main residence is exempt through Private Residence Relief.
CGT is reported and paid through self-assessment, with property disposals requiring a report within 60 days. Using your ISA allowance shelters investment gains entirely. See our capital gains tax calculator.
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