CGT applies when you sell (or "dispose of") an asset for more than you paid — here's how it's structured.
You can make gains up to £3,000 in a tax year completely tax-free. This has been reduced significantly in recent years (it was £12,300 as recently as 2022/23), meaning more people now have some CGT liability.
| Your income tax band | CGT Rate |
|---|---|
| Basic rate | 18% |
| Higher / Additional rate | 24% |
These rates now apply equally to residential property and other assets like shares — they were aligned in the October 2024 Budget, having previously been different.
Calculate your exact CGT on a specific gain.
Use the Capital Gains Tax Calculator →Reliefs like Business Asset Disposal Relief can significantly change your rate for qualifying business sales. Verify with an accountant.