Capital Gains Tax UK: Rates, Allowances & How to Calculate CGT

Tax Guides · 9 min read · Updated 2026-03-20

A comprehensive guide to Capital Gains Tax in the UK, covering current CGT rates, annual exempt amounts, how to calculate your liability, and strategies to reduce your tax bill.

Written by Krishna, Founder & HMRC-registered tax agent at TaxRoot.

How much capital gains tax do I pay in the UK?

The rate depends on your income tax band and the type of asset. For most assets, basic rate taxpayers pay 10% and higher rate taxpayers pay 20%. For residential property, the rates are 18% and 24% respectively. You only pay CGT on gains above your annual exempt amount of £3,000…

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