Answers · UK 2025/26

How much capital gains tax do I pay on £5,000 profit?

On a £5,000 gain in 2026/27, the first £3,000 is tax-free under the annual exempt amount, leaving just £2,000 taxable. A basic-rate taxpayer pays 18% (£360) and a higher-rate taxpayer pays 24% (£480) on most assets, depending on your income.

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, which every individual gets regardless of income. On a £5,000 gain, only £2,000 is taxable after deducting the exemption. 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 £2,000, which is £480. A basic-rate taxpayer with enough unused basic-rate band pays 18% of £2,000, which is £360. Because £5,000 is a relatively small gain, many people find it is fully or largely covered by the exemption if they have made no other disposals in the tax year -- for example, a £3,000 gain from selling shares earlier and a £2,000 gain from selling more shares later in the same tax year would together use up the exemption exactly, leaving nothing taxable. Married couples and civil partners can transfer assets between them tax-free before selling, effectively allowing a combined £6,000 of gains to be sheltered by both partners' annual exemptions. 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.