Capital gains tax in United Kingdom

Capital Gains Tax (CGT) in the United Kingdom is charged on chargeable gains arising from the disposal of assets above the Annual Exempt Amount. The October 2024 Autumn Budget, confirmed by HMRC guidance, restructured the rate schedule and took effect from 30 October 2024 (HMRC, Capital Gains Tax rates and allowances).

What are the current UK CGT rates for 2025/26?

For disposals on or after 30 October 2024, rates are 18 percent for gains that fall within the basic-rate income tax band and 24 percent for gains above that band, regardless of asset class. Prior to 30 October 2024 the main rates were 10 percent and 20 percent for most assets. Residential property had a separate 18/28 percent schedule before the change; the October 2024 reform unified all asset classes at 18/24 percent, so residential property disposals no longer carry a premium rate. Gains are stacked on top of taxable income to determine which band applies; the basic-rate band ceiling is GBP 50,270 for 2025/26 (personal allowance GBP 12,570 plus basic-rate band width GBP 37,700). Trustees and personal representatives pay a flat 24 percent rate. Carried interest is taxed at 32 percent from 6 April 2025, moving into the income tax framework from 6 April 2026 (HMRC, Capital Gains Tax rates and allowances).

What is the Annual Exempt Amount for 2025/26?

The Annual Exempt Amount (AEA) is GBP 3,000 for individuals for both 2024/25 and 2025/26. This is sharply reduced from the historical GBP 12,300 level (2022/23), which was cut by Finance Act 2023 in two steps: GBP 6,000 in 2023/24, then GBP 3,000 from 2024/25 onward. Trustees receive half the individual AEA, set at GBP 1,500 for 2025/26. The AEA cannot be carried forward to future tax years; any unused portion is lost. Married couples and civil partners may each use their own AEA because assets transferred between spouses or civil partners are treated on a no-gain-no-loss basis under TCGA 1992 s.58, allowing the transferee to use their own AEA against the eventual disposal. PwC Worldwide Tax Summaries confirms the GBP 3,000 figure for 2025/26 (PwC, United Kingdom - Other taxes).

CGT rates by asset type and income band (2025/26 and 6 April 2026 onward)

Source: HMRC, Capital Gains Tax rates and allowances, accessed 2026-06-08.

What is Business Asset Disposal Relief and how are rates changing?

Business Asset Disposal Relief (BADR) -- formerly called Entrepreneurs Relief -- provides a reduced CGT rate on qualifying disposals of business assets up to a cumulative lifetime limit of GBP 1 million. The rate has changed in stages following the October 2024 Autumn Budget. For disposals between 6 April 2025 and 5 April 2026, qualifying gains are taxed at 14 percent. From 6 April 2026 the rate rises to 18 percent, aligning with the main basic-rate CGT band. Prior to 30 October 2024 the rate was 10 percent. To qualify, a disposal must generally involve a sole-trader business, a partnership interest, or shares in a personal trading company where the disposer held at least 5 percent of ordinary share capital and voting rights for at least two years and was an officer or employee throughout that period. The GBP 1 million lifetime limit was set by Finance Act 2020 (reduced from GBP 10 million). Gains above the lifetime limit are taxed at standard CGT rates. Investors Relief mirrors the BADR rate trajectory but applies to outside investors holding newly issued shares in unlisted trading companies for at least three years; its lifetime limit was reduced from GBP 10 million to GBP 1 million for disposals after 30 October 2024 (HMRC, HS275 Business Asset Disposal Relief 2026).

What is the 60-day reporting requirement for UK residential property?

UK residents disposing of UK residential property at a chargeable gain are required to report the disposal and pay the CGT due within 60 days of completion via HMRC's Capital Gains Tax on UK Property online account. Non-UK residents face a parallel regime covering both residential and commercial UK property disposals and interests in UK property-rich entities, and are required to file even when no gain arises. The 60-day window runs from the date of legal completion of the sale, not the date of exchange. The tax payment at the 60-day stage is based on a provisional estimate of the filer's full-year income tax position; any over- or under-payment is reconciled through the annual Self Assessment return. A late 60-day return attracts a GBP 100 fixed penalty, daily penalties of GBP 10 per day after three months (capped at GBP 900), and further penalties of GBP 300 or 5 percent of the tax due (whichever is greater) at six and twelve months. Interest accrues from the 60-day deadline. The regime does not apply where Principal Private Residence Relief or another exemption fully shelters the gain (HMRC, Report and pay Capital Gains Tax on UK property).

For a broader introduction to the UK tax system, see the United Kingdom country overview. Related crossovers covering the UK tax stack include UK crypto taxation, UK self-employed tax, and UK inheritance and estate tax. The rules in this article are current as of 2026-06-08 and are drawn from primary HMRC guidance and PwC Worldwide Tax Summaries. Individual circumstances vary considerably; a qualified UK chartered tax professional registered with HMRC or ICAEW can apply these rules to specific situations.