Taxes
United Kingdom — Tax: Capital Gains
For gains from 6 April 2026 individuals pay Capital Gains Tax at 18% within the basic rate band and 24% above it, after a GBP 3,000 annual exempt amount.
VerifiedGovernment / official sourceGOV.UK — Capital Gains Tax rates and allowancesLast reviewed: 2026-10-23
Why this matters
Understanding capital gains tax is crucial for individuals who own assets that may be subject to tax when sold, such as property or investments.
Key facts
- Basic rate taxpayers pay 18% on gains within the basic Income Tax band and 24% on any amount above it; for 2026 to 2027 the basic rate band is GBP 37,700.
- Higher and additional rate taxpayers pay 24% on gains.
- The annual exempt amount for 2026 to 2027 is GBP 3,000.
- Business Asset Disposal Relief is taxed at 18% for qualifying sole traders, partnerships or trustees.
- You do not usually pay Capital Gains Tax when you sell your main home.
Steps
- Calculating Capital Gains — To calculate capital gains, individuals need to work out the profit made on an asset by subtracting its 'allowable costs' from the sale proceeds. Allowable costs include the original purchase price, as well as any costs associated with buying, selling, or improving the asset.
- Filing a Tax Return — Individuals who need to pay CGT must file a Self Assessment tax return with HMRC by the 31 January following the end of the tax year.
Costs
- Annual exempt amount 2026-27: GBP 3,000