UK Capital Gains Tax Rates 2025/26 — What Changed and What You Actually Pay

The Chancellor increased CGT rates in the Autumn Budget on 30 October 2024. If you’re filing for the first time — or even if you’ve filed before — the numbers have changed enough to catch people out.

Current rates (2025/26)

For disposals from 6 April 2025 onwards, the rates on shares and most other assets are straightforward:

The annual exempt amount is £3,000. You only pay CGT on gains above this threshold.

What changed in October 2024

Before the budget, shares were taxed at 10% (basic) and 20% (higher). The Chancellor bumped these to 18% and 24% with immediate effect from 30 October 2024.

This creates a quirk for the 2024/25 tax year: disposals before 30 October attract the old 10%/20% rates, while disposals on or after 30 October attract the new 18%/24% rates. Both sets of gains sit in the same tax year, but at different rates.

If this applies to you, tick Box 51 on your SA108 to flag it. HMRC’s online system should handle the split calculation, but double-check the maths — their software has been known to struggle with split-rate years in the past.

How your income affects the rate

Your capital gains are added on top of your income to determine the rate. Here’s how that works in practice:

Say you earn £40,000. After your £12,570 personal allowance, your taxable income is £27,430. The basic rate band goes up to £37,700, so you have £10,270 of unused basic rate band.

If your taxable gain (after the £3,000 exemption) is £8,000, the entire £8,000 falls within the basic rate band: 18% = £1,440.

If your taxable gain is £15,000: the first £10,270 at 18% = £1,848.60, the remaining £4,730 at 24% = £1,135.20. Total: £2,983.80.

Scottish taxpayers use the same CGT rates as the rest of the UK — CGT is not a devolved tax.

The shrinking allowance

The annual exempt amount has been cut dramatically in recent years. This is worth understanding because it means more people are paying CGT than ever before:

A gain of £5,000 — which would have been entirely tax-free three years ago — now triggers a £360 tax bill for a basic rate taxpayer. It’s not a huge amount, but it means the “I don’t need to bother” threshold is much lower than people think.

Strategies to minimise CGT

Use your ISA. Gains within a Stocks and Shares ISA are completely CGT-free. You can invest up to £20,000 per year. If you’re trading in a general account, consider a “bed and ISA” — sell shares outside the ISA, then repurchase inside it.

Use your annual exemption every year. It’s use-it-or-lose-it. If you’re sitting on gains, consider realising £3,000 worth each tax year to gradually reduce your exposure.

Harvest losses. If some of your holdings are underwater, selling them to create allowable losses can offset gains. Just watch the 30-day rule if you plan to rebuy.

Transfer to your spouse. Transfers between spouses are at “no gain, no loss”. If your spouse has unused allowance or is in a lower tax band, transferring assets before selling can save tax. This is sometimes called “bed and spouse”.

Use our sell simulator to model hypothetical sales against your real cost basis and see the tax impact before you trade.

This information reflects tax rates and allowances as at March 2026. Tax rules can change. This is not tax advice — consult a qualified professional for guidance specific to your situation.