CGT Rates and Allowances for 2025/26

For the 2025/26 tax year (6 April 2025 – 5 April 2026):

• Annual Exempt Amount: £3,000 per individual (gains below this are tax-free).
• CGT Rates: Gains are now aligned across most assets (including residential property and shares):
  • 18% for basic-rate taxpayers (where gains fall within the basic-rate income tax band).
  • 24% for higher- and additional-rate taxpayers.

Rates are determined by adding your gains to your taxable income. Special rules apply for certain reliefs, such as Business Asset Disposal Relief (BADR) at 14% on qualifying business sales (up to a £1 million lifetime limit).

Capital Gains Tax on Residential Property

Selling or disposing of UK residential property (e.g., buy-to-let, second homes, or inherited properties) often triggers CGT. Unlike other assets, you must report and pay CGT on residential property gains within 60 days of completion using HMRC’s online service.

Principal Private Residence Relief (PPR) fully exempts your main home. For investment properties, gains can be significant – especially in London’s high-value market.

Harkia Chartered Accountants offer expert capital gains tax advice in London for residential property disposals, including lettings relief, deductions for improvements, and strategies to offset losses.

Example: Sarah, a higher-rate taxpayer in London, sells a buy-to-let property for £600,000 (purchased for £400,000). Gain: £200,000. After £3,000 allowance: £197,000 taxable at 24% = £47,280 CGT (before reliefs). With expert planning, we could reduce this significantly.

Capital Gains Tax on Shares, Investments, and Employee Schemes

Shares, cryptocurrencies, and other investments are subject to the standard 18%/24% CGT rates (after the £3,000 allowance).

Restricted Stock Units (RSUs) and Employee Stock Purchase Plans (ESPPs)

Many London professionals receive RSUs or participate in ESPPs through tech or international employers.

• RSUs — Taxed as employment income on vesting (at market value). Subsequent sales trigger CGT on any growth above the vesting value. Selling immediately after vesting often means little or no CGT.
• ESPPs — Qualifying schemes offer tax advantages (e.g., no income tax on discount if held for required periods). Non-qualifying schemes tax the discount as income, with CGT on later growth.

Harkia provides specialist advice on RSU and ESPP taxation, helping you coordinate with payroll, claim reliefs, and minimise double taxation.

Key Reliefs and Planning Opportunities

• Principal Private Residence Relief → Full exemption for your main home.
• Business Asset Disposal Relief → 14% rate on qualifying business disposals.
• Losses → Offset against gains.
• Gift Hold-Over Relief → Defer CGT on gifts.
• Bed & Spouse Transfers → Use both allowances by transferring assets to a spouse/civil partner.

As leading CGT accountants in London, Harkia identifies every available relief to minimise your capital gains tax liability.

Why Choose Harkia for Capital Gains Tax Advice in London?

Harkia Chartered Accountants are experts in capital gains tax, with years of experience helping clients across London with property, shares, RSUs, ESPPs, and complex investments. Our proactive advice saves you money, avoids penalties, and provides peace of mind.

• Chartered Accountants regulated by ICAEW & ACCA.
• Specialist tax planning for residential property and employee shares.
• Deadline management and HMRC compliance.
• Transparent, fixed-fee services.

Contact us today for personalised capital gains tax advice in London.

Frequently Asked Questions (FAQs)

What is the Capital Gains Tax allowance for 2025/26?

The annual exempt amount is £3,000 for individuals.

What are the CGT rates in 2025/26?

18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers on most gains, including residential property and shares.

Do I pay CGT on my main home?

No – Principal Private Residence Relief usually fully exempts your main home.

How is CGT on residential property reported?

You must report and pay within 60 days of completion via HMRC’s online property service.

Are RSUs taxed as capital gains?

RSUs are taxed as income on vesting. CGT applies only on growth after vesting when sold.

How are ESPPs taxed in the UK?

Qualifying ESPPs can offer tax-free discounts if held long enough; otherwise, the discount is income-taxed, with CGT on subsequent gains.

Can I reduce my capital gains tax liability?

Yes – through allowances, reliefs, losses, and timing disposals. Expert advice from Harkia Chartered Accountants in London is essential.

Where can I get expert capital gains tax advice in London?

Contact Harkia Chartered Accountants – specialists in CGT on property, shares, RSUs, and ESPPs.