Capital Gains Tax

Capital Gains Tax (CGT) is tax on the gain when you sell or give away an asset worth more than you paid, such as shares outside an ISA, a second property or valuable possessions. You pay tax on the gain, not the full sale price.

According to GOV.UK, for 2026/27:

• 18% on gains that fall within your unused basic rate Income Tax band;
• 24% on gains above it;
• 18% on gains that qualify for Business Asset Disposal Relief;
• the first £3,000 of gains each year is tax-free (the annual exempt amount).

You do not usually pay CGT when you sell your main home.

Example: you sell shares for £40,000 that cost £20,000, with £500 of costs, in September 2026, and your salary is £45,000. The gain is £19,500, or £16,500 after the £3,000 allowance. £5,270 falls in your remaining basic rate band at 18% (£948.60) and £11,230 at 24% (£2,695.20), a total of £3,643.80, payable by 31 January 2028.

Work out your own figure with the Capital Gains Tax calculator.