Reference
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.
Quick answers
What is the CGT annual exempt amount in 2025/26?
£3,000 for individuals and £1,500 for most trusts. Gains up to the AEA aren't taxed; gains above the AEA are taxed at 18% within your unused basic-rate band and 24% above it. Property and non-property assets share the same headline rates after 30 October 2024.
What is the BADR rate for 2025/26?
14% — up from 10%. The lifetime limit remains £1m. The rate rises again to 18% in 2026/27. Investors' Relief follows the same trajectory but with a £1m lifetime limit (reduced from £10m for disposals from 30 October 2024).
Annual Exempt Amount
| Taxpayer | 2025/26 |
|---|---|
| Individual | £3,000 |
| Most trusts | £1,500 |
Standard rates from 30 October 2024
| Asset | Within basic-rate band | Above basic rate |
|---|---|---|
| Most assets (shares, business assets, etc.) | 18% | 24% |
| Residential property | 18% | 24% |
| Carried interest | 32% | 32% |
The "basic-rate band" available is your unused income tax basic-rate band (£37,700) after deducting taxable income.
Trusts
| Asset | Trustees |
|---|---|
| Standard | 24% |
| Residential property | 24% |
Business Asset Disposal Relief (BADR)
| Year | Rate | Lifetime limit |
|---|---|---|
| 2024/25 (from 30 Oct) | 10% | £1m |
| 2025/26 | 14% | £1m |
| 2026/27 | 18% | £1m |
Conditions (must be met for the 2 years before disposal):
- 5%+ ordinary share capital and 5%+ voting rights
- 5%+ entitlement to distributable profits and net assets on a winding up
- Officer or employee
- Company is trading (not investment)
Sole traders and partners need 2+ years of running the business and disposal of the whole or part of the business as a going concern.
Investors' Relief
Same rates as BADR (14% / 18% trajectory). Lifetime limit reduced from £10m to £1m for disposals from 30 October 2024. Conditions:
- Newly issued, fully paid ordinary shares in an unlisted trading company
- Held for at least 3 years since 6 April 2016
- Subscriber not an officer/employee at any time
Reporting and payment
| Disposal | When due |
|---|---|
| UK residential property with CGT | UK Property Account return + payment within 60 days of completion |
| Other gains | Self Assessment by 31 January following the tax year end |
| Non-residents disposing of UK land | 60-day return — even if no tax due |
Reliefs and exemptions
| Relief | Effect |
|---|---|
| Principal Private Residence (PPR) | Exempts main home gain for occupied period + final 9 months |
| Letting Relief | Only where owner shared occupancy with tenant; up to £40,000 |
| Holdover Relief (s.165) | Defers gain on gift of business assets |
| Holdover Relief (s.260) | Defers gain on gift into trust |
| Rollover Relief | Defers gain on disposal of business assets reinvested in qualifying assets within 3 years (or 1 year before) |
| EIS reinvestment relief | Defers gain reinvested in EIS shares |
| SEIS reinvestment relief | 50% of qualifying gain exempt |
Loss rules
- Capital losses offset capital gains in the same tax year first
- Excess carried forward indefinitely against future gains
- Must be claimed within 4 years of the tax year of disposal
- Losses on shares in qualifying unquoted trading companies (s.131 ITA 2007) — election to relieve against income
- Connected-party losses ringfenced to gains on disposals to the same connected party
CGT on death
- No CGT on death
- Beneficiaries acquire assets at probate value (uplifted base cost)
Examples of common asset categories
| Asset | Treatment |
|---|---|
| Quoted shares | CGT applies (unless within ISA/SIPP) |
| Unit trusts and OEICs | CGT applies |
| Crypto-assets | CGT applies on disposal/exchange/spend |
| Personal possessions (chattels) > £6,000 | CGT applies; below £6,000 exempt |
| Cars | Generally exempt (private cars) |
| Government bonds (gilts) | Exempt |
| ISA holdings | Exempt |
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
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.
Closing or Selling a UK Limited Company
There are several routes to extract value from a company you no longer need: striking off (DS01), Members' Voluntary Liquidation (MVL), share sale or asset sale. Each has different tax consequences — BADR can reduce CGT to 14% in 2025/26.