CGT rates and allowances for 2025/26
The annual CGT allowance — formally called the Annual Exempt Amount — is the amount of gain you can realise each tax year before CGT becomes payable. For 2025/26 and 2026/27, this is £3,000 per individual. It cannot be carried forward; if you do not use it in a given tax year, it is lost.
For context, the allowance was £12,300 as recently as 2022/23. It was cut to £6,000 in 2023/24 and to £3,000 in 2024/25, where it has remained. This reduction means many investors now face CGT liabilities on disposals that would previously have fallen entirely within the exemption.
CGT rates on financial assets (shares, funds, ETFs, CFDs) for 2025/26 are:
- 18% for basic rate taxpayers
- 24% for higher and additional rate taxpayers
These rates took immediate effect following the October 2024 Budget, rising from the previous 10% and 20% respectively. Your rate depends on your total taxable income in the tax year — your capital gains are stacked on top of your income, and any portion that exceeds the basic rate band is taxed at 24%.
Business Asset Disposal Relief applies a reduced rate on qualifying business asset gains — 14% for 2025/26, rising to 18% from April 2026. The lifetime limit is £1 million.