How Much Capital Gains Tax Will I Pay in the UK?
Updated June 2026 · 7 min read · Free calculator inside
✓ Checked against HMRC
Capital Gains Tax (CGT) is the tax on the profit when you sell something that has gone up in value — shares, a second property, crypto, or a business. You are taxed on the gain, not the full sale price, and only after your tax-free allowance. This guide explains how the 2026 rates work and how your other income decides whether you pay the lower or higher rate.
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Open the Capital Gains Tax Calculator →You are taxed on the gain, after an allowance
Your gain is the sale price minus what you paid, minus allowable costs such as buying and selling fees or qualifying improvement work. From that you subtract the annual exempt amount (AEA), which is £3,000 for 2026. Only what is left is taxable.
If your total gains for the year are below £3,000, you have no CGT to pay — though you may still need to report larger disposals to HMRC.
UK Capital Gains Tax rates (2026)
The rate you pay depends on your total taxable income, because your gains are effectively stacked on top of your income.
| Your situation | CGT rate on most assets |
|---|---|
| Basic-rate taxpayer (income + gains within the basic band) | 18% |
| Higher / additional-rate taxpayer | 24% |
The basic-rate band ends at £50,270 and the personal allowance is £12,570 for 2026/27.
How your income changes your CGT rate
CGT is not charged in isolation. You add your taxable gain on top of your income to see how much of it falls within the basic-rate band (up to £50,270) and how much spills into the higher band.
The part of the gain sitting within the basic-rate band is taxed at 18%, and any part above it at 24%. So a single gain can be taxed partly at 18% and partly at 24%.
Worked example: selling shares
- You earn £40,000 of salary and make a £20,000 gain on shares.
- Subtract the £3,000 allowance → £17,000 taxable gain.
- You have about £10,270 of unused basic-rate band (£50,270 − £40,000), taxed at 18% = £1,848.60.
- The remaining £6,730 is taxed at 24% = £1,615.20.
- Total CGT ≈ £3,464.
Reliefs and things that are exempt
- Your main home is normally exempt under Private Residence Relief.
- Gains inside an ISA or pension are free of CGT.
- Transfers between spouses or civil partners are exempt and can be used to use both partners' allowances.
- ISAs are a common, legitimate way to shelter future gains from CGT.
Frequently Asked Questions
What is the capital gains tax allowance for 2026?
The annual exempt amount is £3,000. You only pay CGT on gains above this figure in a tax year.
Do I pay capital gains tax on my home?
Usually not. Your main residence is normally covered by Private Residence Relief, so selling the home you live in does not trigger CGT. Second homes and buy-to-lets are not exempt.
Is crypto subject to capital gains tax?
Yes. HMRC treats most cryptoassets like shares for individuals, so selling, swapping or spending crypto can create a taxable gain in the same way.
What are the CGT rates on residential property?
Gains on residential property that is not your main home are taxed at the same 18% and 24% bands for 2026, based on where the gain falls relative to the basic-rate threshold.
Estimate your CGT bill for shares, property or crypto
Skip the maths — get an instant, up-to-date figure with our free calculator.
Open the Capital Gains Tax Calculator →Related Guides
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⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.