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 from residential property than you do on other assets for disposals on or before 29 October 2024.
You do not usually pay tax when you sell your home.
If you pay higher rate Income Tax
If you鈥檙e a higher or additional rate taxpayer, the amount you pay will depend on the date and type of your gain.
Gains from 6 April 2025 onwards聽
You鈥檒l pay:
- 24% on your gains from residential property
- 32% on your gains from鈥�鈥榗arried interest鈥�鈥痠f you manage an investment fund
- 24% on your gains from other chargeable assets
You can see the rates and allowance for previous years.
If you pay basic rate Income Tax
If you鈥檙e a鈥�basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.
Gains from 6 April 2025 onwards聽
You鈥檒l pay:聽聽
- 18% on your gains from residential property
- 32% on your gains from鈥�鈥榗arried interest鈥�鈥痠f you manage an investment fund
- 18% on your gains from other chargeable assets
You can see the鈥�rates and allowance for previous years.
To work out your rate:聽
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Work out how much鈥�taxable income you have - this is your income minus your Personal Allowance and any other鈥�Income Tax reliefs you鈥檙e entitled to.
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Work out your total taxable gains.
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Deduct your tax-free allowance鈥痜rom 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鈥檒l pay 18% on your gains made from 6 April 2025 (or 32% on carried interest).
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For any amount above the basic Income Tax band, you鈥檒l pay 24% on gains made from 6 April 2025 (or 32% on carried interest).
Example 1
You make a gain (not from carried interest) on or after 6 April 2025. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is 拢20,000 and your taxable gains are 拢12,600.鈥��
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2025 to 2026 tax year the allowance is 拢3,000, which leaves 拢9,600 to pay tax on.鈥�
Add this to your taxable income. Because the combined amount of 拢29,600 is less than 拢37,700 (the basic rate band for the 2025 to 2026 tax year), you pay Capital Gains Tax at 18%.鈥��
This means you鈥檒l pay 拢1,728 in Capital Gains Tax.
Example 2
You make a gain (not from carried interest) on or after 6 April 2025. Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is 拢20,000 and your taxable gains are 拢52,600.
First, deduct the Capital Gains tax-free allowance from your taxable gain. For the 2025 to 2026 tax year the allowance is 拢3,000, which leaves 拢49,600 to pay tax on.鈥�
Add this to your taxable income. Because the combined amount of 拢69,600 is more than 拢37,700 (the basic rate band for the 2025 to 2026 tax year), you will pay Capital Gains Tax at 18% on 拢30,270 and then 24% on 拢19,330.
This means you will pay 拢10,087.80.
If you have gains from both residential property and other assets
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% or 32% tax).
You can see the rates and allowance for previous years.
If you鈥檙e a trustee, personal representative or business
Trustees鈥痮r personal representatives of someone who鈥檚 died from 6 April 2025 pay:
- 24% on residential property
- 24% on other chargeable assets
Personal representatives of someone who鈥檚 died pay 32% on carried interest.
From 6 April 2025 you鈥檒l pay 14% if you鈥檙e a sole trader or partnership and your gains qualify for鈥�Business Asset Disposal Relief.
You can see the rates and allowance for previous years.