Answers · UK 2025/26
Do I pay Capital Gains Tax on shares in the UK?
Yes — gains on shares sold outside an ISA or pension are subject to CGT. Annual exempt amount is £3,000 (2025/26). Above that, basic-rate taxpayers pay 18%, higher/additional 24%. Shares in ISAs and SIPPs are completely CGT-free.
Full answer
Capital Gains Tax on shares in the UK 2025/26: gains above the £3,000 Annual Exempt Amount are taxable. Rates: 18% if your total taxable income + gain stays within the basic-rate band, 24% above (rates raised from 10%/20% by the October 2024 Budget). Spouse transfers are exempt — couples can effectively use both AEAs (£6,000 combined). Shares in an ISA or SIPP are completely tax-free. Calculation: proceeds minus base cost (purchase price), minus brokerage fees, minus AEA. Pool rule for shares: same class of share in the same company forms a "Section 104 pool" with averaged cost — special rules apply for shares bought on the same day or within 30 days of sale ("bed and breakfast" rules). Losses can offset gains in the same year and carry forward indefinitely if claimed within 4 years. Bed and ISA: sell shares, immediately rebuy inside an ISA — crystallises any gain (subject to AEA) but future gains are tax-free.
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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.