CGT Rates (2025/26)

Key facts

The basic rate of CGT is 18% for gains falling within the basic-rate band.
The higher rate of CGT is 24% for gains above the basic-rate band.
Business Asset Disposal Relief (BADR) is charged at 10% up to the £1 million lifetime limit.
Trustees and personal representatives pay CGT at 24% on all gains.
These rates apply to disposals on or after 30 October 2024.

Current CGT Rates (2025/26)

The table below shows the Capital Gains Tax rates that apply to disposals on or after 30 October 2024. These rates were set by the Autumn Budget 2024 and apply throughout the 2025/26 tax year:^[1]

Tax Band	Rate on Most Assets	BADR / Investors’ Relief Rate
Basic rate (taxable income up to £37,700)	18%	10%
Higher rate (taxable income £37,701 – £125,140)	24%	10%
Additional rate (taxable income over £125,140)	24%	10%
Trustees and personal representatives	24%	10%

One set of rates: From 30 October 2024, the same rates apply to all asset types — there is no longer a distinction between residential property and other assets. Previously, property gains carried higher rates (18%/28%) compared to other assets (10%/20%).^[2]

How Your CGT Rate Is Determined

The rate you pay depends on where the gain sits relative to the Income Tax basic-rate band. The calculation works as follows:^[1]

Calculate your taxable income (after the personal allowance)
Deduct your taxable income from the basic-rate band limit (£37,700 for 2025/26) to find how much of the band is unused
Gains falling within the unused basic-rate band are taxed at 18%
Gains exceeding the basic-rate band are taxed at 24%

Worked Example: Split-Rate Calculation

Sarah has taxable income of £30,000 and a capital gain of £20,000 (after the Annual Exempt Amount):

Step	Calculation	Amount
Unused basic-rate band	£37,700 − £30,000	£7,700
Gain taxed at 18%	£7,700 × 18%	£1,386
Gain taxed at 24%	(£20,000 − £7,700) × 24% = £12,300 × 24%	£2,952
Total CGT		£4,338
Effective rate	£4,338 ÷ £20,000	21.69%

Business Asset Disposal Relief (10%)

Business Asset Disposal Relief (BADR) — formerly Entrepreneurs’ Relief — provides a reduced CGT rate of 10% on qualifying business disposals. The key conditions are:^[3]

The gain must relate to the disposal of all or part of a sole trader business, or shares in a personal trading company (at least 5% shareholding)
The relevant conditions must have been met for at least two years before disposal
There is a £1 million lifetime limit on gains qualifying for BADR
The 10% rate applies regardless of the taxpayer’s income level

Note: The BADR rate is due to increase to 14% from 6 April 2025, and then to 18% from 6 April 2026. If you are planning a business disposal, the timing of your disposal could significantly affect your tax bill.^[2]

Investors’ Relief (10%)

Investors’ Relief provides a 10% CGT rate on gains from disposing of qualifying shares in unlisted trading companies. The key conditions include:

Shares must have been subscribed for (newly issued) on or after 17 March 2016
Held for at least three years from 6 April 2016 or the date of issue
The investor must not be an employee or officer of the company (though they can be a director)
Lifetime limit of £10 million of qualifying gains

How CGT Rates Have Changed

Period	Non-Property Basic / Higher	Property Basic / Higher
From 30 Oct 2024	18% / 24%	18% / 24%
6 Apr 2024 – 29 Oct 2024	10% / 20%	18% / 24%
6 Apr 2023 – 5 Apr 2024	10% / 20%	18% / 28%
6 Apr 2016 – 5 Apr 2023	10% / 20%	18% / 28%
6 Apr 2008 – 5 Apr 2016	18% flat rate (28% for higher rate from 23 Jun 2010)

Rates for Special Situations

Situation	Rate	Notes
Carried interest	32%	From 6 April 2025 for asset managers
Chattels (wasting assets)	Exempt	Wasting chattels with a predictable life of 50 years or less
Qualifying EIS/SEIS shares	0%	If held for minimum period and conditions met

Frequently Asked Questions

What are the CGT rates for 2025/26?

For 2025/26, the CGT rates are 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. These rates apply to all asset types including shares and property. Business Asset Disposal Relief is taxed at 10%.

How do I know if I pay CGT at 18% or 24%?

The rate depends on your total taxable income. Add your taxable gains (after the Annual Exempt Amount) to your taxable income. Any gains falling within the unused basic-rate band (£37,700 for 2025/26) are taxed at 18%. Gains above the basic-rate band are taxed at 24%.

What rate of CGT do trustees pay?

Trustees and personal representatives pay CGT at the higher rate of 24% on all gains. They do not benefit from a basic-rate band. The Annual Exempt Amount for most trusts is £1,500 (half the individual amount).

When did CGT rates change to 18% and 24%?

The rates changed on 30 October 2024 as part of the Autumn Budget. Before that date, the rates for non-property assets were 10% (basic) and 20% (higher). Property had already been at 18% and 28% before October 2024, then moved to 18% and 24%.

What is the CGT rate for Business Asset Disposal Relief?

Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) is charged at a flat 10% on qualifying gains up to a lifetime limit of £1 million. This rate is available for disposals of qualifying business assets, such as all or part of a sole trader business or shares in a personal trading company.

Sources

Capital Gains Tax rates — GOV.UK
Autumn Budget 2024: Capital Gains Tax changes — GOV.UK
Business Asset Disposal Relief — GOV.UK
Capital Gains Manual: CG10600 – Rates — HMRC