Capital Gains Tax (CGT) is the tax you pay on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that has increased in value. For the 2026/27 tax year, the annual tax-free allowance stands at just £3,000.
Current CGT Rates
- Shares and Cryptoassets: Basic rate taxpayers pay 10%. Higher and additional rate taxpayers pay 20%.
- Residential Property: Basic rate taxpayers pay 18%. Higher and additional rate taxpayers pay 24%.
Estimate your tax liability on asset sales using our Capital Gains Tax Calculator.
Frequently Asked Questions (FAQ)
Q: What is the CGT allowance for 2026/27?
A: The Capital Gains Tax annual tax-free allowance is £3,000. You only pay tax on gains that exceed this threshold.
Q: Do I pay CGT when selling my main home?
A: Usually no. If the property was your main home for the entire duration of ownership, Private Residence Relief (PRR) applies and you pay no CGT.
Q: How do I report capital gains on property?
A: Any taxable gains from selling residential property in the UK must be reported and paid to HMRC within 60 days of the sale completion.