Capital Gains Tax is charged on the profit when you sell an asset that has risen in value. This guide covers the 2026/27 rates and the tax-free annual amount.
Published July 2026 · Updated July 2026
CGT is charged when you dispose of an asset for more than it cost you, on the gain, not the full amount. It applies to things like shares, second properties, business assets and crypto, with various exemptions (your main home is usually exempt).
The annual exempt amount is £3,000 for 2026/27. Gains above it are taxed at 18% to the extent they fall within your basic-rate band and 24% above it. Business Asset Disposal Relief can reduce the rate on qualifying business sales.
Usually not, your main residence normally qualifies for Private Residence Relief. Second properties are different.
Selling business assets or the business itself can trigger CGT, though reliefs like Business Asset Disposal Relief may reduce it.
Source: GOV.UK ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.