Capital Gains Tax is due when you sell an asset — shares, a second property, a business — for more than you paid. For 2025/26 the first £3,000 of gains is tax-free (the annual exempt amount), and the rest is taxed at 18 percent within your remaining basic-rate band and 24 percent above it. Your income determines how much basic-rate band is left. Reliefs such as Private Residence Relief can change the picture.
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Frequently asked questions
Do I pay CGT on my own home?
Usually not — your main home normally qualifies for Private Residence Relief. CGT typically applies to second homes, buy-to-lets and investments.
How does my income affect the rate?
Gains stack on top of income. If your income already fills the basic-rate band, most of the gain is taxed at the higher 24 percent rate.