Answers · UK 2025/26

How much capital gains tax do I pay on £25,000 profit?

On a £25,000 gain in 2026/27, the first £3,000 is tax-free, leaving £22,000 taxable. A basic-rate taxpayer pays 18% (£3,960) and a higher-rate taxpayer pays 24% (£5,280) on most assets, depending on your income and how much of the gain falls into each band.

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

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Capital Gains Tax (CGT) for 2026/27 has an annual exempt amount of £3,000. On a £25,000 gain, £22,000 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 most assets, including shares and second properties. A higher-rate taxpayer pays 24% of £22,000, which is £5,280. A basic-rate taxpayer with enough unused basic-rate band pays 18% of £22,000, which is £3,960, though a gain of this size often spills over into the 24% band once added to income, producing a bill somewhere between the two figures. To find your exact split, add the taxable gain to your income: any portion that pushes you above the £50,270 higher-rate threshold is taxed at 24%. Business owners disposing of qualifying trading business assets or shares may instead benefit from Business Asset Disposal Relief, which charges 18% on gains up to a £1 million lifetime limit rather than the standard rates. CGT is reported and paid via Self Assessment, except UK residential property gains, which must be reported and paid within 60 days of completion. Use the Capital Gains Tax calculator to compute your exact liability.