Your Asset Sale
Your Capital Gains Tax
Based on 2025/26 HMRC CGT rates. This is an estimate — seek professional advice for complex disposals.
How Capital Gains Tax Works in the UK
Capital Gains Tax (CGT) is charged on the profit you make when you sell or dispose of an asset that has increased in value. It applies to assets such as shares, investment property, business assets, and valuable personal possessions worth over £6,000.
Calculating Your Gain
Your capital gain is calculated as the sale price minus the purchase price, minus any allowable costs. Allowable costs include buying and selling fees (solicitor, estate agent, broker fees), stamp duty on purchase, and the cost of improvements (but not maintenance).
The Annual Exempt Amount
For 2025/26, the annual exempt amount is £3,000. This is the amount of gains you can make tax-free each year. It was significantly reduced from £12,300 in 2022/23 to £6,000 in 2023/24 and then to £3,000 from 2024/25 onwards.
2025/26 CGT Rates
| Asset Type | Basic Rate Taxpayer | Higher/Additional Rate |
|---|---|---|
| Shares & other assets | 10% | 20% |
| Residential property | 18% | 24% |
| Carried interest | 18% | 28% |
Annual Exempt Amount History
| Tax Year | Annual Exempt Amount |
|---|---|
| 2025/26 | £3,000 |
| 2024/25 | £3,000 |
| 2023/24 | £6,000 |
| 2022/23 | £12,300 |
| 2021/22 | £12,300 |
| 2020/21 | £12,300 |
Reporting Deadlines
How and when you report CGT depends on the asset type:
- Residential property: You must report and pay CGT within 60 days of completion using HMRC's CGT on UK property service. This applies even if you also need to file a Self Assessment return.
- Shares and other assets: Report via your Self Assessment tax return by 31 January following the end of the tax year.
How Your Income Affects the CGT Rate
Your taxable gain is "stacked" on top of your taxable income. If your income plus gain stays within the basic rate band (up to £50,270 for 2025/26), you pay the lower CGT rate. If the gain pushes you above this threshold, the portion above is taxed at the higher rate.
Capital Gains Tax Examples
Selling Shares (Basic Rate)
Buy-to-Let Property
Higher Rate Share Sale
Frequently Asked Questions
The CGT annual exempt amount for 2025/26 is £3,000. This was reduced from £6,000 in 2023/24 and £12,300 in 2022/23. The reduction means more people now have a CGT liability when disposing of assets.
For shares and other assets: basic rate taxpayers pay 10%, higher and additional rate taxpayers pay 20%. For residential property: basic rate taxpayers pay 18%, higher and additional rate taxpayers pay 24%. The rate you pay depends on your total taxable income plus the gain.
For residential property, you must report and pay CGT within 60 days of completion using HMRC's "Report and pay Capital Gains Tax on UK property" service. For shares and other assets, you report via your Self Assessment tax return by 31 January following the end of the tax year.
Yes. Capital losses in the same tax year must be offset against gains before applying the annual exempt amount. Unused losses can be carried forward indefinitely to offset against future gains. You must register losses with HMRC within 4 years of the end of the tax year in which they arose.
Your main home (principal private residence) is usually exempt from CGT due to Private Residence Relief (PRR). However, CGT may apply if you have let part of it out, used part exclusively for business, have grounds exceeding 0.5 hectares, or if you have been absent for extended periods without qualifying exemptions.
Your taxable gain is stacked on top of your taxable income to determine which CGT rate applies. If your income uses up the basic rate band (£50,270 for 2025/26), the entire gain is taxed at the higher rate. If there is basic rate band remaining, the portion of your gain within that band is taxed at the lower rate, with the remainder at the higher rate.