Capital Gains Tax (CGT)
UK tax glossary · Last reviewed: April 2026
CGT applies to gains from selling shares, investment property, business assets, and other chargeable assets. Each individual has an Annual Exempt Amount (£3,000 in 2026/27). Gains above that are taxed at 18% (basic rate) or 24% (higher/additional rate) for shares and most assets, or 24%/28% for residential property not covered by Private Residence Relief.
The rate depends on your total taxable income in the year: gains that fall within the basic-rate band (up to £50,270) are taxed at 18% (or 24% for property); gains above the band attract 24% or 28%. This means basic-rate taxpayers often pay lower CGT than higher-rate taxpayers even on the same gain.
Business Asset Disposal Relief (formerly Entrepreneurs' Relief) reduces the rate to 10% on qualifying gains up to a £1 million lifetime limit. Losses can be deducted from gains in the same or future years. CGT is reported and paid either via Self Assessment or the 60-day property return for residential property gains.
Worked example
Higher-rate taxpayer sells shares: proceeds £30,000, cost £16,000. Gain: £14,000. Less AEA: £3,000. Taxable gain: £11,000. CGT: £11,000 × 24% = £2,640, due by 31 January 2028.
Common questions
Do I pay CGT when I sell my main home?
Usually no — Private Residence Relief (PPR) exempts the main home from CGT. You may have partial liability if the property was let, used for business, or owned for longer than you lived in it.
How long do I have to report a property CGT gain?
For UK residential property, you must report and pay CGT within 60 days of completion. For other assets, CGT is reported via Self Assessment (31 January deadline).
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.