What Is the Capital Gains Tax Annual Exempt Amount? (UK 2025/26)

Capital Gains Tax (CGT) is charged when you sell or dispose of an asset that has increased in value. The annual exempt amount is the amount of gain you can make each tax year before CGT applies. For 2025/26, this is £3,000 — dramatically lower than the £12,300 it was as recently as 2022/23.

CGT Rates 2025/26

For most assets, CGT is charged at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. These rates apply to gains on shares, personal possessions worth over £6,000, and other chargeable assets. Residential property that is not your main home is taxed at 18% and 24% respectively (reduced from 18%/28% in October 2024).

What's Exempt

Your main home is exempt from CGT under Private Residence Relief. Assets held within ISAs and pensions are also exempt. Transfers between spouses and civil partners are CGT-free, though the gain transfers to the receiving spouse.

Using Your Annual Exempt Amount

The £3,000 exemption cannot be carried forward — if you do not use it, you lose it. Couples can each use their own exemption, giving a combined £6,000 per year. Strategic timing of disposals across tax years can help maximise the use of both exemptions.