Capital Gains Tax Rates and Allowance
The tax-free allowance for capital gains and the rates paid on gains above it, including Business Asset Disposal Relief.
Annual tax-free allowance
£3,000
Gains up to this amount in a tax year are free of Capital Gains Tax for individuals.
GOV.UK — HMRC · checked 30 Sep 2026
Rate within the basic rate band
18%
Applies to the part of a gain that fits within any unused basic rate band once income is taken into account. The same rate applies to residential property and other assets.
GOV.UK — HMRC · checked 30 Sep 2026
Rate above the basic rate band
24%
Applies to gains above the basic rate band, and to all gains for higher and additional rate taxpayers.
GOV.UK — HMRC · checked 30 Sep 2026
Business Asset Disposal Relief rate
18%
The rate on qualifying gains when selling all or part of a business. It rose from 14% on 6 April 2026.
GOV.UK — HMRC · since 6 Apr 2026 · checked 30 Sep 2026
Business Asset Disposal Relief lifetime limit
£1,000,000
The total qualifying gains that can benefit from the relief over a lifetime.
HMRC Capital Gains Manual · checked 30 Sep 2026
What's changed
- 6 April 2026 Business Asset Disposal Relief rate rose from 14% to 18%.