Capital Gains Tax (CGT) applies when a chargeable asset is sold, gifted, or otherwise disposed of at a profit. CGT is payable by individuals, trustees, and personal representatives (PRs). Companies do not pay CGT; instead, capital gains are subject to Corporation Tax.
Most taxpayers benefit from an annual tax-free allowance, known as the annual exempt amount.
Individuals: £3,000
Trustees and personal representatives: £1,500
Companies: No annual exemption available
Gains above these limits are subject to tax.
For individuals, taxable capital gains are added to total taxable income to determine which CGT rate applies.
Gains falling within the basic rate band are taxed at the standard CGT rate
Gains above the basic rate band are taxed at the higher CGT rate
This means the same gain can be taxed partly at different rates depending on income levels.
| Individuals | 2025/26 | 2024/25 |
|---|---|---|
| Exemption | £3,000 | £3,000 |
| Standard rate | 18% | 10%1/18% |
| Higher rate | 24% | 20%1/24% |
| Trusts | 2025/26 |
|---|---|
| Exemption | £1,500 |
| Rate | 24%1 |
Capital Gains Tax can often be reduced or deferred through careful planning, including:
Use of annual exemptions
Timing of disposals
Spousal transfers
Claiming available reliefs
Offsetting capital losses
Mistakes or late planning can result in unnecessary tax liabilities.
AppleGrow Financial Advisors provide expert support with:
Capital Gains Tax calculations
Identifying eligible reliefs and exemptions
Property and investment disposals
Trust and estate CGT planning
HMRC compliance and reporting
If you are planning to sell assets, dispose of property, or realise investment gains, speak with AppleGrow for tailored CGT advice.
