How Much Is Capital Gains Tax On Shares In 2025?

Calculating Capital Gains Tax (CGT) on shares can get a little complex at times, but it doesn’t have to be that complicated. We’ll break down the capital gains tax rate on profits in the UK and some possible exemptions.

Capital Gains Tax Rates in the UK

The amount of capital gains taxes investors have to pay is dependent on their income tax bracket. Investors earning less than £50,270 pay the Basic Rate, while those earning more than £50,270 pay the Higher Rate.

Prior to October 2024, the capital gains tax rates for stocks and shares were 10% and 18% for the Basic and Higher rates. Meanwhile, for real estate, capital gains for both rates stood at 18% and 24%, respectively.

After October 2024, capital gains on profits from equities increased to 18% and 24% for the Basic and Higher rates, while real estate remained unchanged.

UK Capital Gains Tax on Shares

Tax Year (Starting 6 April)	Basic Rate	Higher Rate
2025/26	18%	24%
2024/25 (After 29 October)	18%	24%
2024/25 (Before 29 October)	10%	20%
2023/24	10%	20%
2022/23	10%	20%
2021/22	10%	20%
2020/21	10%	20%

UK Capital Gains Tax on Property

Tax Year (Starting 6 April)	Basic Rate	Higher Rate
2025/26	18%	24%
2024/25	18%	24%
2023/24	18%	28%
2022/23	18%	28%
2021/22	18%	28%
2020/21	18%	28%

Be aware that if you are a basic-rate taxpayer and you make a gain that is large enough to put into a higher-rate band, then you’ll pay the higher rate on this part of the gain.

Capital Gains Tax Allowance

Individual investors have an annual allowance that enables them to earn capital gains profits tax-free up to a certain threshold each year. Any gains beyond this threshold are then taxed at the previously mentioned CGT rates.

The allowance has changed over the years, decreasing substantially since the 2022/23 tax year.

Tax Year	Annual Capital Gains Allowance
2025/26	£3,000
2024/25	£3,000
2023/24	£6,000
2022/23	£12,300
2021/22	£12,300
2020/21	£12,300

RELATED: CGT Share Matching Rules: What is the 30-Day Rule?

Capital Gains Tax Exemptions

Let’s look at exemptions. That is situations and types of security that are not liable to capital gains tax. Here is a list of some common areas:

• Government securities, e.g. gilts
• Qualifying corporate bonds – broadly, interest-based corporate loan stocks, excluding convertibles
• Venture capital trusts (subject to conditions)
• Enterprise investment schemes (subject to conditions)
• Gifts to charity
• ISAs
• Transfers between spouses

Apart from these, the disposal of shares and other securities will, in general, give rise to a potential capital gains tax liability or an allowable loss. Disposal does not necessarily mean a market sale. Gifting the shares in general to any person other than a spouse is deemed to be a disposal at market value, whatever the amount of money changing hands.

Disposals of shares where new securities are received in exchange for the shares are not treated as disposals for CGT purposes. This happens often in takeovers and company reorganisations.

In such a case, you are deemed to hold the new paper at the original cost of the old paper. No CGT disposal occurs until you sell the new shares for cash. If all cash is received in the deal, though, this is like any other sale for CGT purposes. If, as sometimes happens, it is a mixed cash and paper deal, then there may be a partial CGT disposal, or if the cash element is small, then it is not treated as a sale but as a reduction of cost.

Learn more in our Guide to Avoiding Capital Gains Tax on Shares

How to calculate net gains

Net gains mean profits minus losses made in that tax year after deducting all other reliefs that may be available (such as losses brought forward from previous years).

Following on from that, net losses in a year can be carried forward indefinitely and will be set against gains as they arise in future. The personal exemption is given for each tax year alone and cannot be carried forward.

Every person, including minors, is exempt from CGT on the first slice of their net gains in any tax year, up to a figure called the ‘personal exemption’. Again, for the 2025/26 tax year, it’s £3,000.