CGT Allowance 2025/26: What You Need to Know

The capital gains tax allowance for 2025/26 is £3,000 (check GOV.UK for latest). That’s the amount of gain you can make in a tax year before any capital gains tax is due. In this article we explain how the CGT allowance works.

What is the CGT Allowance?

The CGT allowance (annual exempt amount) is the amount of capital gains you can realise each tax year without paying capital gains tax. For 2025/26 it is set at £3,000. Any gains above this (after reliefs and losses) are taxable at the appropriate rate—10% or 20% for most assets, 18% or 24% for residential property, depending on your income tax band.

Recent Changes

The allowance was reduced in recent years (e.g. £6,000 for 2023/24, £12,300 for 2022/23). At £3,000 for 2025/26, more gains may be taxable. If you are planning disposals, consider timing and whether you can use losses or reliefs to make the most of the allowance.

Using Your Allowance

You use the allowance against your total taxable gains in the year (after reliefs and losses). You cannot carry the allowance forward or back. Using your CGT allowance effectively may mean realising gains up to the exempt amount in that year, or offsetting gains with losses so that net gains are within the allowance.

FAQ

Can I give my CGT allowance to my spouse? No. Each person has their own allowance. Couples can sometimes plan disposals to use both allowances.

Does the CGT allowance apply to property? Yes. The same £3,000 allowance applies to gains on residential property and other chargeable assets, but the tax rates for residential property are different (18% / 24%).