What are the Capital Gains Tax rates?

Capital Gains Tax allowance and rates for 2026/27

Capital Gains Tax is a tax on the profit (the "gain") when you sell or give away something that has gone up in value. You pay tax on the gain, not on the whole sale price.

How the allowance has shrunk

Capital Gains Tax on property

You do not usually pay it when you sell your own home. This is called Private Residence Relief. You normally get it in full if:

• it has been your only or main home all the time you owned it
• you have not let it out (a lodger is fine)
• you have not used part of it only for business
• the grounds, including buildings, are under 5,000 square metres (just over an acre)
• you did not buy it just to make a gain

You may have to pay on property that is not your main home. This includes buy to let homes, business premises, land and inherited property. Since the rates are the same for property and other assets, the 18% and 24% rates above apply.

If you sell a UK home and owe tax, you must report and pay within 60 days of completion. You may get interest and a penalty if you are late. Use a Capital Gains Tax on UK property account. If you live outside the UK, you must report every sale of UK property or land, even if there is no tax.

Worked example 1: a basic rate taxpayer

Amira earns £40,000 a year. She sells shares and makes a gain of £20,000.

• Gain after the £3,000 allowance: £17,000
• Her taxable income is £27,430 (£40,000 minus the £12,570 Personal Allowance)
• Basic rate band left: £37,700 minus £27,430 = £10,270
• £10,270 at 18% = £1,848.60
• £6,730 at 24% = £1,615.20
• Total tax: £3,463.80

Worked example 2: a higher rate taxpayer selling a buy to let

Ben pays higher rate tax. He sells a buy to let flat with a gain of £50,000, after taking off what he paid and allowable costs.

• Gain after the £3,000 allowance: £47,000
• £47,000 at 24% = £11,280
• He must report and pay within 60 days of completion.

What changes the amount

• Your income. Gains are added on top of your taxable income to work out your rate.
• Costs. You can usually take off buying and selling costs and the cost of improvements.
• Losses. You may be able to set losses against gains.
• Gifts. Gifts to a husband, wife, civil partner or charity are normally free of the tax.

Capital Gains Tax rates and allowances are the same across England, Scotland, Wales and Northern Ireland.

Related guides

• How much Stamp Duty will I pay?
• Do you pay Inheritance Tax on gifts?
• How much tax do I pay on dividends?
• How much can I put in an ISA?
• How is tax on rental income worked out?

Where these figures come from

• Capital Gains Tax rates and allowances (GOV.UK)
• Capital Gains Tax rates and annual tax free allowances (HMRC)
• Tax when you sell your home (GOV.UK)
• Tax when you sell property (GOV.UK)
• Report and pay Capital Gains Tax on UK property (GOV.UK)