Glossary · UK
What is Chargeable Gain?
The taxable profit on disposal of an asset after deducting costs and the Annual Exempt Amount.
Full Definition
A chargeable gain arises when you dispose of a capital asset (sell, gift, or exchange it) for more than you paid, after subtracting allowable costs such as purchase price, improvement costs, and disposal expenses. For 2026/27 the Annual Exempt Amount (AEA) is £3,000, which is deducted before applying Capital Gains Tax. CGT rates on most assets are 18% (basic-rate taxpayers) or 24% (higher/additional-rate taxpayers); residential property uses the same 18%/24% rates following the 2024 Autumn Budget changes. Losses in the same or earlier tax years can be set against gains. Certain disposals are exempt, including main homes benefiting from Private Residence Relief and assets transferred between spouses.