Capital Gains Tax

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Capital Gains Tax Allowances, Liabilities & Reliefs

In the tax year 2026/2027, an individual’s CGT allowance is £3000.

This means you do not have to pay tax on gains from buying and selling shares or other investments during the tax year up to that amount. You do not normally have to pay tax on any gain you make when you sell your main residence.

	2025/2026	2026/2027
For standard rate taxpayers⁽¹⁾	18%	18%
For trustees and higher/additional rate taxpayers⁽¹⁾	24%	24%
Annual exempt amount - individuals	£3,000	£3,000
Annual exempt amount - trusts	£1,500	£1,500
Entrepreneurs' relief lifetime limit	£1,000,000	£1,000,000
Entrepreneurs' rate	14%	18%

(1). These rates do not apply to transactions involving residential property (the sale of second homes) or carried interest (the share of profits or gains that is paid to asset managers). CGT rates for these transactions remain at 18% (standard rate taxpayers) and 24% (higher rate taxpayers).

If you have used your CGT allowance, don't forget your Individual Savings Account (ISA) allowance. Both a 'Cash ISA' and a 'Stocks and Shares ISA' can shelter capital gains on investments, for example unit trust holdings, worth up to £20,000 per year.

From 6th April 2008 Taper Relief was removed and a new relief called 'Entrepreneurs' relief' was introduced to reduce the Capital Gains Liabilities on the disposal of certain business assets.

CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxed on the 'gain' (profit). This doesn't apply when you sell personal belongings worth £3,000 or less or, in most cases, your main home.

When do I have to pay CGT?

You may have to pay CGT if, for example, you:

sell, give away, exchange or otherwise dispose of (cease to own) an asset or part of an asset
receive money from an asset - for example compensation for a damaged asset

You don't have to pay CGT on:

your car
your main home - provided certain conditions are met
ISAs
UK Government gilts (bonds)
personal belongings individually worth £3,000 or less when you sell them
betting, lottery or pools winnings
money which forms part of your income for income tax purposes

Important Considerations:

if you are married or in a civil partnership and living together you can transfer assets to your husband, wife or civil partner without having to pay CGT
you may not give assets to your children or others or sell assets to them cheaply without having to consider CGT
if you make a loss you may be able to make a claim for that loss and deduct it from other gains, but only if the asset normally attracts CGT
if someone dies and leaves their belongings to their beneficiaries, there is no CGT to pay at that time - however if an asset is later disposed of by a beneficiary, any CGT they may have to pay will be based on the difference between the market value at the time of death and the value at the time of disposal

For further information about the 2025 Budget changes please click here.

Warning Text

TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE ADVICE ON ESTATE PLANNING.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAXATION ADVICE.

Other Areas of Expertise

Andrea - mid 50s

business owner

I came to see Josh not only helping me plan for my retirement but also in helping me look after a Trust fund for my Nieces. Josh is always quick to respond to queries and deals with all requests in a timely and efficient manner. I feel very comfortable in the fact that if I ask for something to be done or need some advice he ALWAYS delivers.
I have not always had this service from other financial advisors. I would happily recommend Josh to anyone needing financial support.

Trevor

Power of Attorney

Following our mother's Alzheimer's diagnosis and admission into a residential care home, my sister and I were looking for financial advice on the options available to fund her care. Our main concern before speaking with Josh was finding an adviser who would provide us with sound financial advice.
Josh provided us with various funding options relating to our mother's residential care provision. These options gave my sister and I the information we needed to determine the best way forward in respect of funding our mother's care needs. Josh provided clear, concise, and timely financial advice, and responses to all our questions were swift, friendly, and easy to understand. He also went out of his way to secure an immediate needs care annuity within the timescales required to meet my mother's urgent funding needs.
My sister and I received excellent support from Warwick Road Financial Services and believe that, without Josh's assistance, we would have struggled to achieve a successful outcome.
My sister and I have a cautious approach when it comes to making major financial decisions. We believe the approach used, and the advice offered by Warwick Road Financial Services, would be of benefit to people who, like us, have a cautious approach when it comes to financial matters.

Darren

IT professional – requiring and receiving ongoing Pre-retirement advice

I approached Jethro several years ago because my wife and I really hadn’t paid any attention to our pension planning. Jethro helped us by identifying various plans from previous employers, and a personal plan that I’d left to stagnate from my contracting days.
The result was that Jethro managed to consolidate all these into single managed portfolios for each of us. One thing we really liked was his clear explanation, regular communication, and friendly but professional approach. He explained things to us in language we could both understand. We found the experience very easy to navigate thanks to Jethro’s detailed and clear explanation and guidance.
We would recommend Jethro to people who need a full-service pension professional to guide them clearly and safely through their options and manage the entire process for them.

Miss Parker

I instructed Claire Adams from Warwick Road Financial services to assist me with consolidating my various pensions into one with Quilter.
Claire took care of everything on my behalf and kept me updated at all times. Clare was extremely professional, efficient and explained everything in great detail.
As I was so impressed I also took out life cover, which again Claire found the best deal and it was set up almost instantly.
I would highly recommend Claire to future clients, friends and family as I know they will receive a first-class Service.

Steve

58, Director

We originally approached Lawrence because we were looking for help with our insurance/mortgage and general finances, whilst in our early 20’s.
Before we had met you, we were concerned about obtaining financial advice from somebody who we didn’t know or wasn’t recommended, due to a family members previous bad experience.
Lawrence helped us by putting us at ease, explaining everything in layman’s terms, so that we understood the advice and were always given opportunities to wait, delay or decline any plans that were offered.
As a result, almost 30 years later we still see Lawrence at least once per year to discuss our current situation and our plans. We are in an excellent position financially regarding our mortgage, savings and pensions, largely thanks to Lawrence.
One thing I really like is the trustworthy and friendly attitude he has always shown towards us.
I found the experience very comforting, knowing that our finances were being taken care of by a professional and that our long-term plans were reachable.
The sort of person that would benefit most from using them would be a young couple, starting out in their careers, as we were when we first met Lawrence.

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