Capital Gains Tax: what you pay it on, rates and allowances
Capital Gains Tax rates
You may pay a different rate of tax on gains on businesses than you do on other assets.
You do not usually pay tax when you sell your home.
You’ll pay Income Tax and National Insurance contributions on carried interest you receive from 6 April 2026 instead.
If you pay higher rate Income Tax
If you’re a higher or additional rate taxpayer, you’ll pay 24% on your gains from 6 April 2026.
You can see the rates and allowance for previous years.
If you pay basic rate Income Tax
If you’re a basic rate taxpayer, the rate you pay on gains you receive from 6 April 2026 depends on the size of your gain and your taxable income.
You can see the rates and allowance for previous years.
To work out your rate:
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Work out how much taxable income you have - this is your income minus your Personal Allowance and any other Income Tax reliefs you’re entitled to.
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Work out your total taxable gains.
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Deduct your tax-free allowance from your total taxable gains.
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Add this amount to your taxable income.
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If this amount is within the basic Income Tax band, you’ll pay 18% on your gains made from 6 April 2026.
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For any amount above the basic Income Tax band, you’ll pay 24% on gains made from 6 April 2026.
Example 1
You make a gain on or after 6 April 2026. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is £20,000 and your taxable gains are £12,600.
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2026 to 2027 tax year the allowance is £3,000, which leaves £9,600 to pay tax on.
Add this to your taxable income. Because the combined amount of £29,600 is less than £37,700 (the basic rate band for the 2026 to 2027 tax year), you pay Capital Gains Tax at 18%.
This means you’ll pay £1,728 in Capital Gains Tax.
Example 2
You make a gain on or after 6 April 2026. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is £20,000 and your taxable gains are £52,600.
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2026 to 2027 tax year the allowance is £3,000, which leaves £49,600 to pay tax on.
Add this to your taxable income. Because the combined amount of £69,600 is more than £37,700 (the basic rate band for the 2026 to 2027 tax year), you will pay Capital Gains Tax at 18% on £17,700 and then 24% on £31,900.
This means you will pay £10,842.
If you’re a trustee, personal representative or business
Trustees or personal representatives of someone who’s died pay tax at 24% from 6 April 2026.
You can see the rates and allowance for previous years.
If you qualify for Business Asset Disposal Relief
From 6 April 2026 you’ll pay 18% if you’re a sole trader, partnership or trustee and your gains qualify for Business Asset Disposal Relief.
You can see the rates and allowance for previous years.
If you have gains charged at more than one rate
You can use your tax-free allowance against the gains that would be charged at the highest rates (for example, where you would pay 24% and 18% tax).
You can see the rates and allowance for previous years.