Capital Gains Tax (CGT) may apply when you sell or dispose of certain assets that have increased in value. This can include investments, second properties, cryptoassets and valuable personal possessions, although your main home and personal car are generally exempt.
For the 2026/27 tax year, the annual Capital Gains Tax exemption is £3,000 for individuals and £1,500 for most trusts. If your total gains for the year are within these limits, there is generally no Capital Gains Tax to pay.
Where your gains exceed the annual exemption, tax is payable on the amount above the allowance. For gains arising after 30 October 2024, the current Capital Gains Tax rates are:
- Basic Rate taxpayers: 18%
- Higher and Additional Rate taxpayers: 24%
- Personal Representatives and Trusts: 24%
These rates apply to most chargeable gains.
Depending on your circumstances, you may also qualify for certain tax reliefs. One of the most well-known is Business Asset Disposal Relief, which can reduce the amount of Capital Gains Tax payable when selling qualifying business assets, subject to HMRC’s rules and conditions.
Capital Gains Tax can be a complex area, particularly if you’re selling investments, business assets or additional property. Planning ahead and taking professional advice can help ensure you’re making the most of the available allowances and reliefs.
If you’d like advice on Capital Gains Tax or other tax planning matters, we’re always happy to help.
