UK CGT Allowance 2025-26 — £3,000 Tax-Free Explained

The Capital Gains Tax annual exempt amount for 2025-26 is £3,000 per person.

The Capital Gains Tax annual exempt amount for 2025-26 is £3,000 per person. This page shows how much gain you can realise tax-free and what the tax is once you go above the allowance. The 2025-26 annual exempt amount is £3,000 and CGT is charged at 18% within your basic-rate band and 24% above it (Business Asset Disposal Relief: 14%). Worked example and the full 2025-26 rate table from HMRC. It runs free in your browser on Gera Tools, with nothing uploaded.

Last updated Source: Gera Tools

What CGT will I pay on any chargeable asset in 2025-26?

On a £8,000 gain with £25,000 of other taxable income, CGT is **£900** — £900 at 18% on the £5,000 sitting in the basic-rate band, after the £3,000 allowance. The 2025-26 annual exempt amount is £3,000 and the main rates are 18% within your basic-rate band and 24% above it.

This page estimates UK Capital Gains Tax on any chargeable asset for the 2025-26 tax year. The Capital Gains Tax annual exempt amount for 2025-26 is £3,000 per person. This page shows how much gain you can realise tax-free and what the tax is once you go above the allowance. The calculator above is pre-filled with a realistic example and you can change every figure.

Worked example

On a £8,000 gain with £25,000 of other taxable income, CGT is £900 — £900 at 18% on the £5,000 sitting in the basic-rate band, after the £3,000 allowance.

StepAmount
Capital gain£8,000
Less £3,000 annual exempt amount−£3,000
Taxable gain£5,000
Taxed at 18% (within basic-rate band)£5,000 → £900
Taxed at 24% (above basic-rate band)£0 → £0
CGT due£900
Net after CGT£7,100
Effective rate on the gain11.3%

The £3,000 annual exempt amount cannot be carried forward — if you do not use it in the tax year, it is lost. Each individual gets their own £3,000, so a couple holding an asset jointly has a combined £6,000. Most trusts get half the individual amount (£1,500 in 2025-26).

CGT rates & allowance — 2025-26

Item2025-26 figure
Annual exempt amount (individuals)£3,000
Annual exempt amount (most trusts)£1,500
Main rate — gains within unused basic-rate band18%
Main rate — gains above basic-rate band24%
Residential property — basic / higher18% / 24%
Trustees & personal representatives24%
Business Asset Disposal Relief14% (lifetime limit £1,000,000)
Basic-rate band split point (taxable income)£37,700

The main 18% / 24% rates apply to all chargeable assets for disposals on or after 30 October 2024, so they cover the whole 2025-26 tax year. Your gain is stacked on top of your taxable income: the part still within the £37,700 basic-rate band is taxed at 18%, and the rest at 24%.

How CGT is worked out

  1. Gain = disposal proceeds − cost − allowable expenses.
  2. Subtract the £3,000 annual exempt amount (per person, can’t be carried forward).
  3. Stack on income: taxable income up to £37,700 uses the basic-rate band; the unused part is available for the gain at 18%.
  4. Apply the rates: 18% within the remaining basic-rate band, 24% above.

Sources & as-of