Capital Gains Tax · 2025/26
Capital Gains Tax on £1,000,000 — UK 2025/26
On a £1,000,000 gain from a non-residential asset (shares, crypto or other) in 2025/26, a higher-rate taxpayer pays £239,280 in Capital Gains Tax — an effective rate of 23.93% across the full gain. A basic-rate taxpayer pays £179,460. The first £3,000 of gains is exempt.
Breakdown (Non-Residential Asset)
How CGT works on a £1,000,000 gain
Capital Gains Tax is charged on the profit you make when you dispose of an asset that has gone up in value. For 2025/26 the Annual Exempt Amount is £3,000 — gains up to that amount across the whole tax year are tax-free. Above the allowance, the rate depends on two things: the type of asset and which income tax band the gain falls into when added on top of your taxable income.
For non-residential assets (shares outside an ISA, crypto, second-business assets, collectibles) the 2025/26 rates are 18% within the basic-rate band and 24% above it. Residential property (not your main home) is taxed at 18% / 24%. On a £1,000,000 gain the taxable portion after the annual exemption is £997,000.
You report CGT either via Self Assessment after the tax year ends, or — for UK residential property — within 60 days of completion using the HMRC online service. Eligible business owners may be able to use Business Asset Disposal Relief at 14.00% on qualifying gains, subject to a lifetime limit of £1m. Losses from prior years can be brought forward to reduce the taxable gain.