What's exempt from Capital Gains Tax?

A lot — which is why most people never pay it. Your main home is usually exempt under Private Residence Relief; anything inside an ISA is exempt; your car is exempt; personal possessions sold for under £6,000 are exempt; gifts to your husband, wife or civil partner, and gifts to charity, are exempt; and Premium Bond, lottery and betting winnings and UK government gilts are exempt. The first £3,000 of gains each year is also tax-free.

What are the Capital Gains Tax rates?

For gains made from 6 April 2026, you pay 18% on the part of your gain that falls within your basic Income Tax band, and 24% on anything above it — and these rates now apply to both property and shares. To work out which band, add your taxable gains to your taxable income for the year. Business Asset Disposal Relief can give a lower rate on qualifying business sales (up to a lifetime limit), but check the current rate as it has been changing.

How do I report and pay Capital Gains Tax?

If you sell UK residential property and there's CGT to pay, you must report and pay it within 60 days of completion, using HMRC's UK Property Account. For other gains (like shares), you report through Self Assessment by 31 January after the end of the tax year, or use HMRC's 'real-time' CGT service. Keep records of what you paid, what you sold for, and any costs like fees or improvements — these reduce your gain.

Do I pay CGT when I sell my home?

Usually not. If a property has been your only or main home for the whole time you owned it, Private Residence Relief normally means there's no Capital Gains Tax to pay when you sell. It can get more complicated if you let it out, used part of it solely for business, the grounds are very large, or you have more than one home — in those cases, or if you're unsure, check GOV.UK or speak to an accountant.

Capital Gains Tax explained: what you pay

Q: What is Capital Gains Tax?

Capital Gains Tax (CGT) is tax on the profit (the 'gain') when you sell or dispose of certain assets that have gone up in value — for example a second property, shares held outside an ISA, or a valuable possession. You're taxed on the gain, not the whole amount you sell for. You only pay if your total gains in the year are above the tax-free Annual Exempt Amount, which is £3,000 for individuals for 2026/27 and 2026/27.

What CGT is — tax on the gain, not the sale

You pay CGT on the increase in value of an asset between buying it and selling (or giving) it away — not on the whole amount you get. Work it out like this:

Take what you sold it for (or its market value if you gave it away).
Subtract what you paid for it and your allowable costs — buying/selling fees, and money spent improving it (not normal repairs).
That’s your gain. Add up all your gains for the year, then take off the £3,000 Annual Exempt Amount. You only pay CGT on what’s left.

The £3,000 is per person, per year A married couple or civil partners can each use their £3,000 — and gifts between them are exempt, so transferring an asset before a sale can use both allowances. The allowance can’t be carried over to next year if you don’t use it.

What you don’t pay it on

A lot is exempt — which is why CGT never touches most people:

Exempt	Detail
Your main home	Usually no CGT under Private Residence Relief if it’s been your only/main home throughout.
ISAs & pensions	Anything held inside an ISA or pension is outside CGT entirely.
Your car	Private cars are exempt.
Possessions under £6,000	Most personal items sold for less than £6,000.
Gifts to spouse / charity	Gifts to a husband, wife or civil partner, or to charity, are exempt.
Winnings & gilts	Premium Bond, lottery and betting winnings, and UK government gilts.

The rates — 18% or 24%

For gains made from 6 April 2026, you pay:

18% on the part of your gain that falls within your basic-rate Income Tax band;
24% on anything above it.

These rates now apply to both property and shares. To find which band your gain sits in, add your taxable gains on top of your taxable income for the year.

Worked example You sell a second property and make a £20,000 gain. Take off the £3,000 allowance → £17,000 taxable. If you’re a higher-rate taxpayer, that’s taxed at 24% = £4,080, due within 60 days. A basic-rate taxpayer would pay 18% on the part within their band. Business Asset Disposal Relief can lower the rate on qualifying business sales (up to a lifetime limit) — check the current rate, as it has been changing.

How to report & pay

What you sold	How & when
UK residential property	Report and pay within 60 days of completion, using HMRC’s UK Property Account.
Shares & other assets	Report through Self Assessment by 31 January after the tax year, or use HMRC’s “real-time” CGT service.

Do this now

Before you sell, keep every record — what you paid, what you sold for, and costs like legal fees, estate-agent fees and improvements. They all reduce your gain. For property, diary the 60-day deadline the moment you complete.

CGT can be complex — if there’s a meaningful amount at stake, it’s worth an accountant. Free general money guidance: MoneyHelper. See also Self Assessment and Inheritance Tax.

CGT is UK-wide Unlike Income Tax, Capital Gains Tax is not devolved — the same rules and rates apply across England, Scotland, Wales and Northern Ireland.

Source verification

Primary sourceGOV.UK — Capital Gains Tax: what you pay it on, rates and allowances

Specific URLgov.uk/capital-gains-tax

Last verified15 June 2026 (the £3,000 Annual Exempt Amount, the 18%/24% rates applying to property and shares from 6 Apr 2026, the 60-day property reporting and the main-exemptions list web-checked against GOV.UK)

ConfidenceHigh on the core framework — CGT is charged on gains above the £3,000 Annual Exempt Amount (individuals, 2026/27 and 2026/27); from 6 Apr 2026 rates are 18% (basic band) / 24% (above) for both property and shares; UK residential property gains are reported and paid within 60 days; main home (Private Residence Relief), ISAs, cars, possessions under £6,000, spouse/charity gifts and gilts are exempt. Business Asset Disposal Relief rates have been changing and are stated qualitatively.

Key facts£3,000 annual allowance (per person, not carried over) · 18%/24% rates (property + shares from Apr 2026) · 60-day reporting + payment for UK residential property via the UK Property Account · other assets via Self Assessment by 31 Jan · main home / ISAs / car / sub-£6,000 possessions / spouse & charity gifts / gilts exempt · CGT is UK-wide (not devolved)

ScopeUK-wide. Information, not financial advice — use GOV.UK and MoneyHelper, and an accountant for anything significant.

Capital Gains Tax — common questions

What is Capital Gains Tax?

Tax on the profit when you sell or give away certain assets that have risen in value — like a second property or shares outside an ISA. You're taxed on the gain, not the whole sale price, and only on gains above the £3,000 tax-free allowance for the year.

What's exempt?

Your main home (Private Residence Relief), anything in an ISA or pension, your car, personal possessions sold for under £6,000, gifts to your spouse/civil partner or to charity, and Premium Bond/lottery winnings and gilts — plus the first £3,000 of gains each year. That keeps most people out of CGT entirely.

What are the rates?

From 6 April 2026: 18% on the part of your gain within your basic-rate Income Tax band, and 24% above it — for both property and shares. Add your gains on top of your income to see which band applies. Business Asset Disposal Relief can reduce the rate on qualifying business sales (check the current rate).

How do I report it?

UK residential property: report and pay within 60 days of completion via HMRC's UK Property Account. Other assets like shares: through Self Assessment by 31 January, or HMRC's real-time CGT service. Keep records of costs — they reduce your gain.

Do I pay CGT on my home?

Usually not — Private Residence Relief normally means no CGT on your only or main home. It can change if you let it out, used part solely for business, have very large grounds, or own more than one home. Check GOV.UK or an accountant if unsure.

Sources The £3,000 Annual Exempt Amount, the 18%/24% rates from 6 April 2026, the 60-day property reporting and the exemptions · GOV.UK — Capital Gains Tax and GOV.UK — Capital Gains Tax rates. SortedUK is not a regulated adviser and this is general information — use GOV.UK and MoneyHelper, and an accountant for anything significant. Last reviewed: 15 June 2026.

Capital Gains Tax — and why most people never pay it.