UK Capital Gains Tax rates for 2025/26: 18% and 24%, one set of rates for everything

For the 2025/26 tax year, Capital Gains Tax is 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, on gains above a £3,000 tax-free allowance. That applies to residential property that is not your main home and to shares, funds and most other assets alike — a change from the rates that applied before 30 October 2024, when property and other assets were taxed differently. Knowing which rate applies, and how the allowance works, is the difference between a rough guess and an accurate figure before you sell.

The 2025/26 CGT rates

HMRC's own rates and allowances guidance sets out a single pair of rates for individuals for the 2025 to 2026 tax year, covering both property and other chargeable assets:

Which of the 18% or 24% rate applies depends on total taxable income for the year, not just the size of the gain: a gain is added on top of income, and the part of it that falls within the remaining basic rate band is taxed at 18%, with anything above that taxed at 24%. The confirmed figures are set out in HMRC's Capital Gains Tax rates and allowances guidance.

Why property and other assets are no longer taxed differently

Before 30 October 2024, residential property that was not a main home was already taxed at 18%/24%, while shares, funds and most other assets were taxed at a lower 10%/20%. The Autumn Budget 2024 raised the rate on those other assets to match the property rates, effective for disposals from 30 October 2024 onwards, so the whole of the 2025/26 tax year runs under a single unified set of rates rather than the old two-tier system. Anyone working from an older article or spreadsheet that still quotes 10% and 20% for shares is working from out-of-date figures.

The £3,000 tax-free allowance

Every individual can make gains up to the annual exempt amount each tax year before any CGT is due. For 2025/26 that is £3,000, the same figure as 2024/25, and £1,500 for most trusts:

The allowance was cut sharply over two consecutive years — from £12,300 to £6,000 for 2023/24, then to £3,000 for 2024/25 — and has now been held at that lower level for a second year running. Unlike the Income Tax personal allowance, it cannot be transferred between spouses or civil partners; each person has their own £3,000 to use.

A worked example

Take someone who sells a buy-to-let flat in 2025/26 and makes a gain of £20,000 after costs. They already have a salary that places them in the higher-rate Income Tax band for the year, so the whole gain is taxed at 24% after the allowance:

A basic-rate taxpayer with the same £20,000 gain, and enough unused basic rate band to absorb all of it, would instead pay 18% on the £17,000 taxable gain — £3,060. The difference between the two outcomes is entirely about the seller's other income for the year, not the asset itself.

What is usually exempt

Not every disposal is chargeable. The most common exemption is Private Residence Relief, which generally means no CGT is due on the sale of a main home. Gains on ISAs, most personal belongings worth less than £6,000 each, and gifts to a spouse, civil partner or charity are also generally outside the scope of the tax. These exemptions sit alongside the rates above rather than replacing them — the rates in the tables only apply once a gain is established as chargeable in the first place.

Business Asset Disposal Relief in 2025/26

Someone selling all or part of a qualifying business, rather than an investment property or shares held as a personal investment, may be able to claim Business Asset Disposal Relief (formerly Entrepreneurs' Relief). For disposals in the 2025/26 tax year this cuts the rate to 14%, up from 10% in 2024/25, on gains up to a lifetime limit of £1,000,000. The rate rises again to 18% for disposals from 6 April 2026, so the timing of a business sale can materially affect the tax due. Full eligibility conditions are set out on GOV.UK's Business Asset Disposal Relief page.

Working out which rate applies to you

Because the 18% and 24% rates depend on total taxable income for the year, the first step in estimating CGT accurately is working out which Income Tax band the gain falls into. The income tax calculator shows where a given salary or other income sits against the 2025/26 bands, which is the figure needed before applying the CGT rates above — a gain on top of a modest salary can straddle both the 18% and 24% rates in the same tax year, rather than falling neatly into one or the other.

Reporting and paying on time

Working out the rate is only half the job — CGT also has to be reported and paid to a strict deadline, and the deadline is much tighter for property than for anything else. Anyone who sells UK residential property with a gain to report has 60 days from completion to report it and pay the tax, through a separate Capital Gains Tax on UK property account rather than waiting for the normal Self Assessment cycle. Missing that window triggers an immediate £100 penalty, rising to the higher of £300 or 5% of the tax due if it is still outstanding six months later, plus interest on the unpaid amount. Gains on shares and most other assets are not subject to this 60-day rule and are instead reported through a normal Self Assessment return, due by the following 31 January — a materially longer window than the one that applies to property. Full details of the property deadline are set out on GOV.UK's report and pay Capital Gains Tax page.

Sources

• HM Revenue & Customs: Capital Gains Tax rates and allowances
• GOV.UK: Capital Gains Tax rates
• GOV.UK: Business Asset Disposal Relief
• GOV.UK: Report and pay your Capital Gains Tax

This is general information, not tax advice. Capital Gains Tax depends on your full circumstances, including other income, reliefs and previous disposals in the same tax year. For a decision about your own situation, check HMRC's guidance or speak to a regulated tax adviser or accountant.