Glossary · UK
What is AEA (Annual Exempt Amount — CGT)?
Tax-free allowance for capital gains, £3,000 per person for 2025/26.
Full Definition
The Annual Exempt Amount (AEA) is the tax-free slice of capital gains each individual can realise in a tax year before Capital Gains Tax applies. For 2025/26 it is £3,000 (down from £6,000 in 2023/24 and £12,300 in 2022/23). Trusts get half — £1,500. Gains above the AEA are taxed at 18% (basic-rate band) or 24% (higher/additional-rate) for most assets including shares and residential property from 30 October 2024 onwards. Couples each have their own AEA, so transferring assets between spouses before sale can double the exemption. The AEA is use-it-or-lose-it — it cannot be carried forward.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.