Answers · UK 2025/26
How much capital gains tax do I pay on £55,000 profit?
On a £55,000 gain in 2026/27, the first £3,000 is tax-free, leaving £52,000 taxable. A higher-rate taxpayer pays 24% (£12,480); a basic-rate taxpayer pays 18% on the part within their remaining basic-rate band and 24% on the rest, since a gain this size usually spans both bands.
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Capital Gains Tax (CGT) for 2026/27 has an annual exempt amount of £3,000. On a £55,000 gain, £52,000 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, since the two rates were aligned from the October 2024 Budget onwards. A higher-rate taxpayer, whose income already exceeds the £50,270 higher-rate threshold, pays 24% on the full £52,000, giving £12,480. A basic-rate taxpayer with little other income could pay as little as £9,360 if the whole gain fits inside their remaining basic-rate band, though most gains of this size push at least part of the total into the 24% band once stacked on top of salary or other income -- the true figure for most people falls somewhere between the two totals shown here. Gains this size warrant careful planning: spreading a disposal across two tax years (where possible) uses two annual exemptions and two basic-rate bands, potentially saving several thousand pounds. Business Asset Disposal Relief, charging a flat 18% up to a £1 million lifetime limit, may apply to qualifying business or company share sales. UK residential property gains must be reported and paid within 60 days of completion. Use the Capital Gains Tax calculator to work out your exact liability based on your other income.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.