What triggers Capital Gains Tax
CGT is charged when you dispose of an asset that has risen in value — selling, gifting, swapping or transferring it. Common chargeable assets are second properties and buy-to-lets, shares held outside an ISA, business assets, cryptocurrency, and personal possessions worth over £6,000. Your main home is normally exempt under Private Residence Relief.
| 2026/27 | Figure |
|---|
| Annual exempt amount | £3,000 |
| Basic-rate gains | 18% |
| Higher / additional-rate gains | 24% |
| Business Asset Disposal Relief | 18% (£1m lifetime) |
| Property reporting window | 60 days |
Rates for property and other assets were aligned at 18%/24% from 30 October 2024. BADR rose to 18% from April 2026 (from 14%).
Worked example
Higher-rate taxpayer sells shares for a £25,000 gain
Gain£25,000
Less annual exempt amount−£3,000
Taxable gain£22,000
CGT at 24%£5,280
Capital Gains Tax due£5,280
Your rate depends on your income plus the gain: the part of the gain falling within your remaining basic-rate band is taxed at 18%, the rest at 24%. Model it with the CGT calculator.
The 60-day property rule
If you sell UK residential property and a gain arises, you must report it and pay the CGT within 60 days of completion using HMRC’s dedicated service — separate from your annual return. Missing this is one of the most common (and costly) CGT mistakes.
⏱️ 60-day deadline
Report and pay via the Capital Gains Tax on UK property service within 60 days of completion. You’ll need a Government Gateway account and a CGT-on-property account number. Late reporting brings penalties and interest.
Private Residence Relief
Your only or main home is usually fully exempt if you lived in it throughout ownership, the grounds are under 0.5 hectares, and no part was used exclusively for business. The final nine months of ownership always qualify even after you move out. If you own two homes you can elect which counts as your main residence (within two years of having the second).
Crypto, shares and losses
- Crypto — every sale, swap or spend is a disposal. HMRC applies share-pooling rules and expects reporting through Self Assessment (SA108).
- Shares — holdings of the same class are pooled (Section 104), so cost is averaged on each sale.
- Losses — offset gains in the same year automatically; surplus losses carry forward indefinitely if reported to HMRC within four years of the tax year’s end.
Planning example
Using both spouses’ exemptions
Gain before planning£6,000
Transfer half to spouse (no gain/no loss)£3,000 each
Each uses £3,000 exemption£0 taxable
CGT after planning£0
Transfers between spouses and civil partners are CGT-free, so couples can pool two £3,000 exemptions and use both basic-rate bands.
How and where to report
- UK residential property — within 60 days via the CGT-on-property service.
- Other assets — on the SA108 capital gains pages of your Self Assessment return by 31 January.
- Real-time service — you can also report some gains immediately using HMRC’s "real time" CGT service.
