Guides
Capital Gains Tax on Property and Shares (2025/26)
Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of an asset. Rates for 2025/26 changed mid-year — residential property and other gains both rose, with new BADR rates phasing in to 2026/27.
Quick answers
What is the CGT annual exempt amount for 2025/26?
£3,000 for individuals and £1,500 for most trusts. This was reduced from £6,000 in 2024/25 and £12,300 in 2022/23. Gains up to the AEA aren't taxed; only gains above it count toward your CGT bill.
What are the CGT rates for 2025/26?
For disposals on or after 30 October 2024, both residential property and other assets are taxed at 18% within the basic-rate band and 24% above it. Business Asset Disposal Relief is 14% in 2025/26, rising to 18% in 2026/27. Investors' Relief lifetime limit dropped to £1m.
When do I have to report a property sale for CGT?
If you dispose of UK residential property and there's CGT to pay, you must file a return through the UK Property Account and pay the tax within 60 days of completion. No 60-day return is needed if the gain is fully covered by Private Residence Relief or the annual exempt amount.
What is Capital Gains Tax?
CGT is charged on the gain (sale proceeds minus base cost minus allowable costs) when you dispose of a chargeable asset. Disposals include selling, gifting (other than to a spouse or charity), exchanging or losing the asset.
Annual Exempt Amount (AEA) 2025/26
- Individuals: £3,000
- Most trusts: £1,500
This is a major reduction from £12,300 in 2022/23.
CGT rates 2025/26
For disposals on or after 30 October 2024:
| Asset / taxpayer | Basic-rate band | Above basic rate |
|---|---|---|
| Most assets (shares, etc.) | 18% | 24% |
| Residential property | 18% | 24% |
| Carried interest | 32% | 32% |
The "basic-rate band" portion uses your unused income tax basic-rate band (up to £37,700).
Business Asset Disposal Relief (BADR)
- 2024/25 (from 30 Oct): 10% on lifetime limit £1m
- 2025/26: 14%
- 2026/27: 18%
Investors' Relief
Same rate trajectory as BADR but lifetime limit reduced to £1m (from £10m) for disposals from 30 October 2024.
Residential property — 60-day reporting
Sales of UK residential property generating CGT must be:
- Reported via the UK Property Account within 60 days of completion
- CGT paid within the same 60 days
Penalties apply for late returns: £100 fixed plus daily and percentage-based penalties for prolonged delays.
Principal Private Residence (PPR) relief usually exempts your main home.
Shares
- Section 104 holding — shares of the same class in the same company are pooled at average cost
- Bed & breakfasting — selling and repurchasing within 30 days uses the new purchase as the matched cost (anti-avoidance)
- EIS, SEIS and VCT investments have special CGT reliefs/exemptions if conditions are met
Reporting CGT on Self Assessment
If you don't have property gains and your total proceeds are under 4 × AEA (£12,000) and gains are under the AEA, you may not need to report. Otherwise, gains go on the SA108 Capital Gains pages of your Self Assessment.
Allowable losses
Capital losses offset capital gains in the same year first, with any excess carried forward. Losses must be claimed within 4 years of the tax year of disposal.
General guidance, not tax advice. Speak to a qualified accountant for advice tailored to your situation. Figures relate to the 2025/26 UK tax year. Source: HMRC, gov.uk.
Frequently asked questions
Related guides
Self Assessment Tax Returns: A Complete Guide
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Reference: UK CGT Rates and Allowances 2025/26
A reference summary of UK CGT rates, allowances and reliefs for 2025/26 — including the post-30 October 2024 rate changes and the new BADR/IR rate trajectory.
Example: 60-Day CGT Report on a Residential Property
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The Complete UK Tax Guide for Small Businesses (2025/26)
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