What is the capital gains tax annual exempt amount for 2025-26?

The CGT Annual Exempt Amount for 2025-26 is £3,000. You can make up to £3,000 of gains tax-free. Gains above this are taxed at 18% for basic-rate taxpayers or 24% for higher and additional-rate taxpayers on most assets.

Is capital gains tax different for property and shares?

From October 2024, CGT rates on residential property and other assets including shares were aligned. Both are now 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Previously, residential property was taxed at higher rates.

What is Business Asset Disposal Relief (BADR)?

BADR (formerly Entrepreneurs Relief) reduces CGT to 14% in 2025-26 (rising to 18% in 2026-27) on qualifying gains from selling a business. There is a £1 million lifetime limit. Conditions include owning at least 5% of a company for at least 2 years.

Capital Gains Tax Calculator

Calculate UK Capital Gains Tax (CGT) for 2025-26. Covers residential property, shares, crypto and other assets. Includes the £3,000 annual exempt amount, brought-forward losses, Business Asset Disposal Relief (BADR), and how your income affects the CGT rate you pay.

Asset Details

Asset type

Residential property

Second home, buy-to-let, or investment property

Shares & investments

Stocks, funds, crypto, or other securities

Other assets

Valuables, land, business assets, etc.

Sale price

Purchase price

Buying costs

Selling costs

Capital improvements

Total gain£93,000

Tax Settings

Your annual income

Losses brought forward

Tax year

Claim Business Asset Disposal Relief

Reduced rate for qualifying business disposals (14% instead of 18%/24%)

Basic rate band remaining£10,270

Gains within this amount are taxed at 18% instead of 24%

Capital Gains Tax

£20,984

Effective CGT rate

22.6%

Net profit

£72,016

Net proceeds

£274,016

After selling costs & CGT

Gain Calculation

Sale price£300,000

Allowable costs-£207,000

Total gain£93,000

Annual exempt amount-£3,000

Taxable gain£90,000

Tax Breakdown

Band	Rate	Taxable	Tax
Basic Rate	18%	£10,270	£1,849
Higher Rate	24%	£79,730	£19,135
Total CGT	22.6%		£20,984

Smart Tips

The annual exempt amount has been significantly reduced

The CGT annual exempt amount fell from £12,300 (2022-23) to £6,000 (2023-24) and then to £3,000 (2024-25 onwards). More of your gains are now taxable than in previous years.

GOV.UK: CGT allowances

CGT rates are now 18% and 24% for all asset types

From 30 October 2024, CGT rates on shares and other assets increased from 10%/20% to 18%/24%, aligning with residential property rates. The property higher rate decreased from 28% to 24%.

GOV.UK: Capital Gains Tax rates

Your gain crosses into the higher rate band

£10,270 of your gain is taxed at 18% and £79,730 at 24%. If you can time the disposal across two tax years, you may keep more gains within the basic rate band.

GOV.UK: Capital Gains Tax rates

Shares held in an ISA are exempt from CGT

Any gains on shares held within a Stocks & Shares ISA are completely tax-free. You can invest up to £20,000 per year. Consider moving future investments into an ISA wrapper to avoid CGT.

GOV.UK: Individual Savings Accounts (ISAs)

Frequently asked questions

What is the capital gains tax annual exempt amount for 2025-26?: The CGT Annual Exempt Amount for 2025-26 is £3,000. You can make up to £3,000 of gains tax-free. Gains above this are taxed at 18% for basic-rate taxpayers or 24% for higher and additional-rate taxpayers on most assets.
Is capital gains tax different for property and shares?: From October 2024, CGT rates on residential property and other assets including shares were aligned. Both are now 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Previously, residential property was taxed at higher rates.
What is Business Asset Disposal Relief (BADR)?: BADR (formerly Entrepreneurs Relief) reduces CGT to 14% in 2025-26 (rising to 18% in 2026-27) on qualifying gains from selling a business. There is a £1 million lifetime limit. Conditions include owning at least 5% of a company for at least 2 years.