Glossary · UK
What is Capital Gains Tax (CGT)?
Tax on profits when you sell assets like property, shares or business interests.
Full Definition
CGT is charged on the profit ("gain") when you sell or give away an asset that has increased in value. The 2025/26 Annual Exempt Amount is £3,000 — gains below this are tax-free. Above the allowance: 18% (basic rate taxpayer) or 24% (higher rate) on all assets including property after October 2024. Business Asset Disposal Relief (BADR) reduces the rate to 14% on the first £1m of qualifying business gains (rising to 18% in April 2026). Main residence is exempt (Private Residence Relief). Inside an ISA or pension, all gains are CGT-free.
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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.