What are the CGT rates for property compared to other assets?
Capital Gains Tax (CGT) rates in the UK depend on two factors: the type of asset you are disposing of and your income tax band. For the 2024/25 tax year, the rates are as follows:
CGT rates on residential property (e.g. buy-to-let, second homes):
| Tax Band | Rate |
|---|---|
| Basic rate taxpayer | 18% |
| Higher/additional rate taxpayer | 24% |
CGT rates on other assets (e.g. shares, personal possessions, business assets):
| Tax Band | Rate |
|---|---|
| Basic rate taxpayer | 10% |
| Higher/additional rate taxpayer | 20% |
How your rate is determined:
Your CGT rate depends on your total taxable income plus your gains. The calculation works like this:
- Take your taxable income (after Personal Allowance).
- Add your taxable capital gains (after the £3,000 annual exempt amount).
- If the combined total falls within the basic rate band (up to £50,270), you pay the lower rate.
- Any amount above the basic rate band is taxed at the higher rate.
Example: You earn £40,000 and make a £15,000 gain on shares. After the £3,000 exemption, your taxable gain is £12,000. Your income uses £27,430 of the basic rate band (£40,000 minus £12,570 allowance). You have £10,270 of the basic rate band remaining. So £10,270 of your gain is taxed at 10% and the remaining £1,730 at 20%.
Reporting property gains:
If you sell a UK residential property at a gain, you must report and pay CGT within 60 days of completion using the HMRC "Report and pay Capital Gains Tax on UK property" service.
No spam. Just this answer, straight to your inbox.