Answers · UK 2025/26

How much capital gains tax do I pay on £100,000 profit?

On a £100,000 gain in 2026/27, the first £3,000 is tax-free under the annual exempt amount, leaving £97,000 taxable. A basic-rate taxpayer pays 18% and a higher-rate taxpayer 24% on most assets -- £17,460 to £23,280 depending on your income, though a gain this size will often push part of it into the higher rate regardless of your other income.

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

Full answer

Capital Gains Tax (CGT) for 2026/27 has an annual exempt amount of just £3,000. On a £100,000 gain, £97,000 is taxable. The rate depends on where the gain sits when stacked on top of your income: 18% within the basic-rate band and 24% above it, for both residential property and other chargeable assets such as shares or a second home. Worked example: a higher-rate or additional-rate taxpayer pays 24% x £97,000 = £23,280. Even a basic-rate taxpayer with the full £37,700 basic-rate band unused would only shelter part of a £97,000 gain at 18% (£6,786) before the rest is taxed at 24% (£16,236.60), giving a blended bill of roughly £23,022 -- illustrating that gains of this size are rarely taxed entirely at the lower 18% rate for anyone. Business Asset Disposal Relief (BADR) can reduce the rate to 18% on up to £1 million of lifetime gains from selling a qualifying business, a significant saving for entrepreneurs, though BADR itself rose from 14% to 18% on 6 April 2026. UK residential property gains must be reported and paid within 60 days of completion. Use the Capital Gains Tax calculator, and consider spreading disposals across tax years or using pension contributions to extend your basic-rate band where a large one-off gain is planned.