Capital Gains Tax (CGT) applies when you sell or dispose of an asset for more than you paid for it. This can include property that is not your main home, shares, cryptocurrency, or business assets.

Annual CGT Allowance (2025/26)
For the 2025/26 tax year, the tax-free allowance is:

• £3,000 for individuals
• £1,500 for trusts

You only pay CGT on gains above this amount.

CGT Rates
CGT rates depend on your income tax band and the type of asset sold:
Assets (not property):

• 10% (basic rate)
• 20% (higher/additional rate)
  Residential property (not main home):
• 18% (basic rate)
• 24% (higher/additional rate)

The 24% property rate continues for 2025/26.

When CGT Must Be Paid
CGT may be due when you:

• Sell or gift shares, investments, or a second property
• Sell part of a business or company shares

For UK residential property, CGT must be reported and paid within 60 days of completion.
Other gains are reported through Self Assessment by 31 January after the tax year.

Key Takeaway
With a reduced tax-free allowance, more individuals are affected by CGT in 2025/26. Understanding the allowance, rates, and reporting deadlines is essential to avoid penalties and stay compliant.