United Kingdom Capital Gains Tax
Detailed capital gains tax rates and rules for United Kingdom in 2026.
Capital GainsGBP
Capital gains tax in the UK is charged at 10% for basic rate taxpayers and 20% for higher and additional rate taxpayers on most assets. Residential property disposals that are not a main residence are taxed at higher rates of 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. The UK does not distinguish between short-term and long-term gains by holding period. An annual exempt amount of £3,000 applies before CGT is due.
Short-Term Rate
20%
Long-Term Rate
20%
Standard Rate
20%
Exemptions
- Annual exempt amount (£3,000 for individuals)
- Principal private residence relief on main home
- Transfers between spouses and civil partners
- Gains within ISAs (Individual Savings Accounts)
- Gifts to charities
- Business Asset Disposal Relief (10% rate on qualifying gains up to £1 million lifetime limit)
How United Kingdom Capital Gains compares
United Kingdom’s capital gains tax rate of 20% is the 43rd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Europe’s regional average of 17.8%.
United Kingdom
20%
Europe average
17.8%
Global average
13.8%
